QUESTION: I’d like to know if I can apply for a solo 401k plan. I work for a company and I am also a self-employed yoga teacher.
Let me know what my possibilities are.
ANSWER: Because you are a self-employed you qualify to apply for a solo 401k. The condition to setup a solo 401k is part-time or self-employment income, which you obviously satisfy through the yoga teacher profession. Note that the fact that you also work for a company will not preclude you from setting up a solo 401k unless you own an interest in that company. What’s more, even if you participate in that company’s 401k plan, you can still set up a solo 401k for your part-time or full-time yoga self-employed business. To learn about the rules surrounding making contributions to multiple 401k plans click here.
Thank you.
Sincerely,
CI in South Carolina
