Self-employed self directed 401(k)

i don't think it matters if your self employed or not. or if you have another plan.

when i was looking after i left the company. there were many plans and it got confusing. between the different 401's and ira's. might be different now.

it be nice if i could pull out my 401. it's stuck with a company and i have yet to be able to roll it over to somebody else. and since i've only worked for one company my whole life that offered it. i don't see myself getting that option ever again unless i change careers.

this turkey week when i get home. i'm going to look at and see about starting contributions again. maybe.
the way the stock market played out. when i started the account. i'm still shy of breaking even with mine and employer payments. although it's getting closer now that the market has actually broke new levels.

 

Company driver is restricted to the pension provided by the employer. In addition to this the driver can set up IRA's to the limits based on their age. A roth IRA grows tax free but the contribution is not a deduction on the income. There are restrictions on withdrawals.

Outside rental income is a passive activity and not eligible to have a pension.

As far as a self employed plan, you must be self employed to be eligible to consider in the first place.

 

http://www.irs.gov/publications/p590/ch01.html#en_US_2012_publink1000230355


[h=4]Who Can Open a Traditional IRA?[/h] You can open and make contributions to a traditional IRA if:

• You (or, if you file a joint return, your spouse) received taxable compensation during the year, and
  
• You were not age 70½ by the end of the year.

You can have a traditional IRA whether or not you are covered by any other retirement plan. However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. See How Much Can You Deduct , later.
Both spouses have compensation. If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. You cannot both participate in the same IRA. If you file a joint return, only one of you needs to have compensation.
[h=4]What Is Compensation?[/h]


Generally, compensation is what you earn from working. For a summary of what compensation does and does not include, see Table 1-1. Compensation includes all of the items discussed next (even if you have more than one type).
Wages, salaries, etc. Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2.
Commissions. An amount you receive that is a percentage of profits or sales price is compensation.
Self-employment income. If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of:

• The deduction for contributions made on your behalf to retirement plans, and
  
• The deduction allowed for the deductible part of your self-employment taxes.

Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs.
Self-employment loss. If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation.
Alimony and separate maintenance. For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance.
Nontaxable combat pay. If you were a member of the U.S. Armed Forces, compensation includes any nontaxable combat pay you received. This amount should be reported in box 12 of your 2012 Form W-2 with code Q.

[h=3]Table 1-1. Compensation for Purposes of an IRA[/h]


[TABLE]
[TR]
[TD]Includes ... [/TD]
[TD]Does not include ... [/TD]
[/TR]
[TR]
[TD] [/TD]
[TD]earnings and profits from
property. [/TD]
[/TR]
[TR]
[TD]wages, salaries, etc.[/TD]
[TD] [/TD]
[/TR]
[TR]
[TD] [/TD]
[TD]interest and
dividend income. [/TD]
[/TR]
[TR]
[TD]commissions.[/TD]
[TD] [/TD]
[/TR]
[TR]
[TD] [/TD]
[TD]pension or annuity
income. [/TD]
[/TR]
[TR]
[TD]self-employment income.[/TD]
[TD] [/TD]
[/TR]
[TR]
[TD] [/TD]
[TD]deferred compensation.[/TD]
[/TR]
[TR]
[TD]alimony and separate maintenance.[/TD]
[TD] [/TD]
[/TR]
[TR]
[TD] [/TD]
[TD]income from certain
partnerships. [/TD]
[/TR]
[TR]
[TD]nontaxable combat pay.[/TD]
[TD] [/TD]
[/TR]
[TR]
[TD] [/TD]
[TD]any amounts you exclude
from income. [/TD]
[/TR]
[TR]
[TD] [/TD]
[TD] [/TD]
[/TR]
[/TABLE]



[h=4]What Is Not Compensation?[/h]


Compensation does not include any of the following items.

• Earnings and profits from property, such as rental income, interest income, and dividend income.
  
• Pension or annuity income.
  
• Deferred compensation received (compensation payments postponed from a past year).
  
• Income from a partnership for which you do not provide services that are a material income-producing factor.
  
• Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b.
  
• Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs.

 

Consult a qualified tax expert and pay for the advice.

There is a limit to my giving of free advice.

 

I've been with Prudential for 30 years and have been very happy with them. It all started when a salesman come to my house and gave me a free Thesaurus.

 

Just the yellow pages.

You can certainly find one, but make sure you call and learn their knowledge first.

Many Enrolled Agents have more experience with taxes than CPA's. But even they need to be checked on the trucker area.

There are other threads where members have listed their recommendations.