Multiple Solo Ks To Optimize Tax Deferral

[Bryan Hancock]

I found a post on White Coat Investor about using multiple 401(k)s via a SoloK or some combination thereof with an employer 401(k) to allow one to defer more than $132k (I'm married) into retirement vehicles.  I'd link to it, but I think that may be against the rules.  If you Google 'White Coat Investor' and 'multiple 401k rules' you'll probably find it.

If one were to have a development business, hard money business, and some form of consulting business these would all, in theory, be separate and not subject to being labeled a controlled group.  My understanding is that up to 25% of the earnings from each business could be eligible for tax deferral to exceed the $66k/individual or $132k total annual contribution limit.  So one would need to make 4 X $132k == $528k per business line to be eligible to exceed this limit per business.

Does this seem correct?  Has anyone done this or seen someone else do it?  

[Chris Seveney]

@Bryan Hancock

That doesn’t seem correct

You can have 3 401k’s but the limits are the limits per individual not per 401k plan.