Can you make deductible IRA contributions if you have solo 401k
This IRS page mentions that limits are subject to coverage under employer plan.
[url]http://www.irs.gov/Retirement-Plans/Are-You-Covered-by-an-Employer%27s-Retirement-Plan%3F[/url]
What if you are not covered by typical employer plan but if you have a self directed 401k / solo 401k (one member 401k plan for a self employed person)? Are you still prevented from IRA deduction similar to large employer 401k members?
Problem is that for new self-employment gig, schedule C income may be small and so retirement contributions to solo(k) (roughly max 25% of schedule C income) would be tiny. But, income from non-schedule C sources could be enough to make a deductible 5k contribution to IRA. But, if solo 401k is treated as W-2 employer plan, not much retirement contribution can be made either to IRA or solo(k).
Any clarification?