Self-employed 401K contribution limits

[Guest evphd]

Hello. I'm hoping someone may be able to guide me to the correct answer.

I contribute to a University sponsored 401(a). These are mandatory contributions in the amount of 7.5% of my gross with 6% employer contribution.

I also participate in an optional 403(b) plan via the University.

Now, I've opened up a self-employed 401(k) for my consulting business.

I've received conflicting responses on the max I can contribute to the SE 401(K).

Answer 1: 14,000 - my 403b contribution - my 401a contribution

Answer 2: 14,000 - my 403b contribtion

Can anyone help clarify this matter or point me to the relevant sections of the IRS code?

Thanks

[Lame Duck]

See Internal Revenue Code Section 402(g), particularly 402(g)(3).

[BeckyMiller]

But, for your self-employment income, you might consider a regular plan formula, rather than a 401(k) type formula. The 402(g) cite is to your elective deferrals to a 403(b) or 401(k) plan. If you are the employer and the sole worker for your consulting business, you can make a contribution of basically 20% of your net earnings from self-employment (THAT IS A GROSS SIMPLIFICATION AND YOU NEED TO GET TAX ADVICE.) This is a lower limit, but not included in the $14,000 cap of Section 402(g). There may be other complexities with your 403(b) plan depending on the amount of wages you get from the University.

No one faces a more complex retirement plan contribution deduction calculation than a University employee with an outside source of self-employment income.