John (age 52) works for IBM and has contributed $12,500.00 to the 401K plan.

John quits IBM and starts a sole proprietorship. He sets up an individual 401k plan and and contributes $1500.00 plus $4000.00 catch up contribution as the employee. John makes $210,000.00 in his new business how much more can be contributed to the individual 401K as the employer contribution?

Thanks,

Since John left the company and now has a decent income through his new business,his employer IBM will not be contributing anything to his 401k account

Hi there,

I agree with Nelson, that as john has already left IBM and now is into his own business, his previous employer has left with no liability to contribute towards his 401K plan.

Regards

However i feel John alone can continue contributing to his 401k account.