Contribute to Roth solo 401k without compensation

October 16, 2014 | By Mark Nolan

Tax Planning its that time.

QUESTION: Another question. In a solo 401K plan, can I make a contribution to the Roth, without having any compensation for the year? I know I can in a Regular IRA Roth, up to $6,500, due to my age. 🙂

ANSWER: In order to make contributions–whether pre-tax or Roth 401k contributions– to a solo 401k, you must have earned income from the self-employed business that sponsors the solo 401k.

On another note, in order to make contributions to a Roth IRA, earned income is also required.

Thanks, Matt in Virginia

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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