Sydney

Probably an easy question. I work one job as a full-time employee and I max out my ee contribution by contributing $18,000 into the plan. I guess it has gone up this year a bit. I also have a side business where I am the only employee. I know I can't put any more into a 401(k) account for that business as I am maxing out my contributions into my W-2 job. My question is: If I am making $80K in the side business, what would be the most I could contribute to the second plan? If it matters, I am an LLC , but I file taxes as an S-corp. Thanks.

I have a DB plan I have funded for 3 years. I want to continue to fund it, but maybe not at the same levels. Can I? Also, another option I am looking at if permissible is whether I could stop the funding of the plan now, or does that cause any inherent problems? Finally, can I at this time rollover all or part of the funds in the DB plan to an IRA or 401(k) plan. Thanks very much to this community.

jpod, thank you!! I am not losing it. Well, maybe losing it that I didn't remember the reference, but all these people and custodians are saying you can do that....and, I am like, "uh, I think there may be something that limits that ability." Thanks so much, I truly appreciate it.

Okay I am going to make this easy as I swear I've read something, somewhere on this topic: Person does not qualify to make the Roth IRA contribution due to income. They open a traditional (back door) IRA and convert to Roth. Question: Can they do that regardless of any other rules? For example, I swore I read somewhere that if the person had any other traditional IRA established, there would be taxation on the back door contribution other than conversion. Am I losing it? I've talked to a few IRA custodians and they no worries, I can do make the contribution without any regard to whether I have any other IRA(s) established. True? Thanks in advance.

Thanks to all. I so appreciate the time you spent assisting. I agree, it is very complicated.

Spirit, thank you so much for you reply. Would it be better to just set up a 401(k) since it is my understanding that we could have more restrictive (don't know if that is the right word) participation requirements? For example, I think we can have age 21,but working more than 1,000 hours per year and no participation until at least two years of full time employment? With the SEP, here is where I am confused, does there have to be 5 years? For example, I would assume if the restaurant has only been in business for 2 years, I would still need to cover employees even though they have not worked 3 years? Thanks.

I am hoping someone can assist with this. I am married and have a restaurant, and I do have a few full time employees. My husband is also self-employed but his business does not have any employees. I have been told that he cannot have his own 401(k) as we are married and my employees would need to be covered under his plan since we are married. Could he establish his own SEP IRA for his own business without me having to include my restaurant employees as part of his SEP? While I am at it, is there any way I could have a SEP without having to cover my employees. The restaurant business is so hit and miss as it relates to employees...ugh. But, do I even have any options as to what I can do? I am assuming I can always do a regular IRA, but would like to try to do something more. But, if my husband could at least have a SEP (or 401(k)...but I don't think it is possible unless my employees are covered). Any and all comments are appreciated. Thanks.