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Can you contribute to a Solo K while working and receiving a W2

mickey
Level 3

My client came to me to say he set up a solo K for himself.  He's working and earning wages in the form of a W2.  His employer doesn't offer a retirement plan.

I thought you have to have self employed income to be able to do this?  Am I missing something here? Working and receiving a W2 is not self employmen

For sure he can contribute to an individual traditional IRA but he insisted that his investment advisor says he can create his own 401K.

What are your thoughts?  

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3 Replies 3
IRonMaN
Level 15

Of course he can create it ------------------ and some day when he is self employed he can contribute into the account.  Until then he as to go the IRA route.

Barber! Why didn't I think of this before? Getting paid to give out bad tax advice - need I say more? I've run with scissors for years so it is a natural fit.
dascpa
Level 8

My thoughts are he needs a new investment advisor.  One who has a basic understanding of tax law.

mickey
Level 3

Laughing with you with this comment.

Thanks for validating that.  I thought may be Congress came out with something a few minutes ago and I missed it. 🙂