Max S/E Contributions in a DC plan; OK to put in 402(g) limit PLUS 25% of adjusted SE comp?

[Guest chris4013]

My understanding is that a self employed can defer the 402(g) limit and contribute 25% of the adjusted SE comp. Is this correct?

[mbozek]

its 20% before subtracting the contribution from the covered comp. e.g., comp of 200 K and contribution of 40 k = 40/(200-40) = 25%

[Blinky the 3-eyed Fish]

Mbozek, don't forget that the deferrals count against the annual addition limitation. So Chris, you are correct in that the deferrals don't count against the deduction limit, just make sure the total annual additions don't exceed the lesser of 100% of compensation (as adjusted) or $40,000.

[Guest chris4013]

Thank you. I just wanted to confirm that it's 402(g) + 25% max. We won't be close to the 415 limit with 100k se income.