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Solo 401K contributions investing activities

I am making decent profits from my investing and trading business, on top of my W2 from my day job.

 Can I open a solo 401K from my investing activities? is this considered a pretax contribution ?

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1 Reply
dmertz
Level 15

Solo 401K contributions investing activities

Contributions to a solo 401(k) would need to be supported by net earnings from self-employment.  You are self-employed with respect to your personal investing activities only if you qualify as a "trader."

 

https://www.irs.gov/taxtopics/tc429

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