Solo 401k as a Real Estate Professional

[Chad Slater]

Hi, 

I am a real estate professional.  Can I use my rental income to fund a solo 401k since I'm managing all of my properties?  My rentals are held under LLCs.

Thanks! 

[Carl Fischer]

@Chad Slater

Pay yourself a salary. Most people pick asalary between $6.5k and $24k.  They are maximum limits for salary deferral contributions to Ira and 401k.  You will have to pay your SS/MED (15%) and possibly some state and fed tax. It may be worthwhile and if your in a low tax bracket do it as a Roth.