What are the self-employment income requirements to open and maintain a solo 401(k)? Are you required to have SE income in the year you create the plan? Do you need ongoing SE income to keep the plan open? (I'm only talking about the IRC, not any extra conditions custodians might impose). Do you have to have a reasonable expection of SE income? Etc.?
-- Rich Carreiro snipped-for-privacy@rlcarr.com
Yes, your annual contribution is limited by a percent of your net earnings from self-employment (combined with the elective salary deferral amount, $16.5K for 2009). No net earnings from SE, contribution limit is zero.
I guess if a firm offered to set up a plan for you without any initial contribution, you could set one up, but I doubt any will do that.
Do you need
No. If you end your business or don't make a profit in a subsequent year, the 401k can just be left alone, similar to leaving your 401k with a former employer when you leave a job.
-Mark Bole
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