This was informative..the calculation with 20% earned income was helpful…however, I got lost at the end when you said you can use it for Roth account and the contribution limits don’t apply like they do for the solo 401k…have to watch again
@ Travis Sickle, Great, informative videos.... I am an independent contractor, receive a 1099, and I am living overseas where I incur only US tax liability, working through a US based company. I just opened a Solo 401k, using my LLC and an EIN in an attempt to save more for retirement. I believe I meet all the requirements, but I have 1-2 questions just to ensure that I am 100% doing this the correct way. To date, my salary all comes to my personal bank account. This bank account is not formally linked to my LLC. Does this matter? I am in my first year of this position, and I have not received my first annual 1099 form; however, does this form need to list my LLC name and LLC registered mailing address, vice my personal name and mailing address under ‘recipient’? The 1099 also lists my TIN, and not a LLC’s EIN. Does any of this matter, as long as I am a legitimate 1099 employee and a sole proprietor/employee of an LLC? I appreciate any assistance/information!
I opened a solo 401k and put in $7,000 to try to reduce my tax bill, but it was reduced by only $400. Does that sound right? Now, $7,000 is stuck in a retirement account just to save me $400.
