I am planning to invest into Real Estate from SDIRA LLC or Solo 401k LLC. I as of now have a SDIRA. This year and next year I am getting self-employment income on 1099. I like to contribute as much as I can tax differed to the retirement accounts like solo 401k, IRA etc. I know that I can contribute to
Solo 401k $18500 + 20% Employer contribution
$5500 towards Traditional or Roth IRA
And then there are SEP IRA, SIMPLE IRA etc
I am wondering what combination of retirement accounts gives me the maximum contribution to the retirement accounts.
Can I do
Solo 401k + SIMPLE IRA
Solo 401k + SEP IRA
Your business may only sponsor one form of employer based retirement plan; either Solo 401(k), SEP IRA, or SIMPLE IRA, but not a combination. The Solo 401(k) will have the greatest capacity for contributions.
You may separately have an individual IRA. You can contribute up to $5,500, but may not be able to take a deduction for doing so. If you are covered by an employer sponsored retirement plan (i.e. the Solo 401(k)) your income level may prohibit deductions for IRA contributions.
Here is IRS info on the topic:
I agree, the Solo 401k is the best bet for maximizing contributions as long as you are eligible for the plan. Contributing to either a traditional or Roth IRA can be an added bonus. Note that while traditional IRAs can be transferred to a Solo 401k, Roth IRAs cannot.
A Solo 401k and Roth IRA will get you there.
Also, note that you cannot contribute to both a solo 401k and a SIMPLE IRA in the same year if the SIMPLE IRA is also sponsored by your self-employed business.