Solo 401k
Looking to open a solo 401k under my current Home Improvement business which is a LLC. Need checkbook control and ability to take loans. Any recommendations from those that currently have the same.
@Brian Eastman What about income that is 1099-MISC? My limited understanding of the topic, was any 1099 income counted towards getting a Solo 401k
@Kevin Hofstee 1099-NEC is the replacement for 1099-MISC (and stands for Non-Employee Compensation)
Not all flavors of 1099 income would be considered self-employment income. You could receive a 1099-DIV (dividends) or 1099-INT (interest), for example, both of which are passive income.
The bottom line here is that a discussion with your licensed tax counsel would be quite beneficial to help you understand how to treat the income you receive and create an appropriate tax strategy - of which a Solo 401(k) might be a piece.
