If you contributed $13,000 into your 401(k) plan at work, you're not eligible to contribute another $13k as "salary deferrals" into your Solo 401(k). Instead, the amount you can contribute is limited to just 20% of your net self-employment income, or approximate $4,000 in your case, depending on the expenses you'll claim against that income.

The Solo 401(k) only makes sense for individuals who are not able to contribute the max into a 401(k) plan through another employer.

If you're married, and your spouse earns $20k as an indepedent contractor, and earns no other income during the year, then the Solo 401(k) would allow your spouse to sock away almost $17k from the $20k she earned into a pre-tax account. That's a pretty good deal!!

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