Business earnings are the basis for eligible 401k contributions. So to the extent you don’t have business earnings, you don’t have any eligible 401k contributions to make.
It is not readily apparent if a self-employed person contributes in advance of earning. Unlike a W-2 employee, where 401k contributions are done by payroll withholding. But it’s risky. If you end up overcontributing it may be difficult to remove excess 401k contributions.
It is not readily apparent if a self-employed person contributes in advance of earning. Unlike a W-2 employee, where 401k contributions are done by payroll withholding. But it’s risky. If you end up overcontributing it may be difficult to remove excess 401k contributions.
Statistics: Posted by HomeStretch — Wed Aug 07, 2024 5:07 pm — Replies 1 — Views 78