Hey Guys!
The BP Podcast with Amanda Han on taxes last month really got the gears turning in my head. For anyone who hasn't listed to it yet... it's a great one! Episode 162
Now onto my question.. I have a traditional IRA which was rolled over from a 401(k) from a previous employer.
I currently hold a W-2 job, and own cash-flowing investment property on the side. I understand that the income from my rentals is reported on Schedule E, and that to contribute to a solo 401(k) you need Schedule C reported income. I currently do not have Schedule C income reported.
So my question is two parts:
- Is there a schedule c income requirement for opening and rolling over an IRA into a solo 401k? Is owning a business enough to qualify?
- Is there a schedule c income requirement to maintain the solo 401k. Meaning that if there is no schedule c income in a particular year, the solo 401k must be rolled over into another type of retirement account?
I also know that a self directed IRA is an option, but the potential benefits and flexibility of a solo 401k seem a lot more appealing (lending, no UBIT, etc) .
