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Self-employed 401k – Can I keep my Solo 401k if my self-employment income fluctuates?
QUESTION:
What happens to my solo 401(k) if I don’t have income from my business next year which is 2023 but again have revenue in 2024?
RESPONSE:
While there is no minimum amount of earned self-employment income needed to maintain the Solo 401k, the Solo 401k participant must be pursuing self-employment activity and reporting self-employment activity on their taxes.
Keep in mind that there is no minimum contribution amount so one could simply choose to refrain from making solo 401k contributions when their self-employment activity decreases.
