It's great that you're thinking about these important financial and tax implications as you start your LLC!
- Yes, you can open a Solo 401(k) even if you have W-2 income from one hospital.
- The W-2 income doesn't prevent you from having a Solo 401(k) for your self-employment income. You just need to ensure your contributions from all sources (W-2 401k and Solo 401k) stay within the IRS limits. Here are more details for that from the IRS: 401(k) limit increases to $23,500 for 2025
- As for the Cobra, that can not be deducted for the business but it can be used for Itemized deductions.
- The rules from the IRS state, the insurance plan must be established, or considered to be established, as discussed in the following bullets, under your business.
- For self-employed individuals filing a Schedule C (Form 1040) or Schedule F (Form 1040), a policy can be either in the name of the business or in the name of the individual.
Have a great day, Christina, EA 18+Years
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