In general, it is very easy to qualify as self-employed. As long as you have a legitimate business with the intent of generating income/profit, and meet the two following eligibility requirements:
Part-time or full-time self-employment activities; and,
No presence of any common-law, full-time employees (other than a spouse or business partner).
Who is not a common-law employee?
Employees under the age of 21;
Employees who are working less than 1,000 hours per year; and,
Legitimate usage of 1099 independent contractors
Hobbies - A hobby does not qualify for self-employment.
Being an Independent Contractor - Make sure you qualify for being an independent contractor.
1099 Contractors - If you retain the services of an independent contractor, make sure they qualify for an independent contractor vs. being considered your common-law employee!
Spouse - Your spouse can participate in the plan, rollover funds into the plan and make contributions as long as they are a legitimate participant in the business.
Yes, you can. The IRS does not stipulate how many 401(k) plans you can participate in, only that you qualify and comply with contribution limits.
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