It depends on what you mean by "supplemental income," but here are some general thoughts that may help: 1) If you are employed and have a 401(k) plan, in 2015 you can contribute up to $18,000 of earnings through payroll. If you're age 50+, you get an additional "catch-up" contribution of $6,000 for a total of $24,000. 2) If #1 applies and you have "supplemental income" you'd like to save through payroll, IF your plan allows additional after-tax contributions then you can contribute more. For 2015, the maximum 401(k) contributions from ALL sources--your salary deferrals, employer matching, employer profit sharing, so on--is $53,000 (or $59,000 with the $6,000 "catch-up" for age 50+). Talk with HR or check your 401(k)'s Summary Plan Description (SPD) to see if the plan allows additional after-tax contributions. 3) If this "supplemental income" is via self-employment or a small business, then you can establish and make tax-deductible contributions to one of the small business plans (Solo 401(k), SIMPLE IRA, SEP-IRA) depending on your needs and whether you have employees. If you are employed and have a side business/self-employment, be sure you fully understand any contribution limitations that may need to be coordinated between your own plan and that of your employer. 4) If you participate in #1 but #2 and #3 are not an option for you, then depending on your income levels you may be eligible to make a tax-deductible contribution to a Traditional IRA or a non-tax deductible contribution to a Roth IRA. I hope that helps. All the best!
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