Solo-401(k) questions

[Guest BruceC]

I have a 48 year old professor who makes annual contributions to his university sponsored 403(b). He also operates a consulting business organized as an LLC, which I assume for retirement plan purposes will be treated as a sole proprietor. He would like to make a maximum contribution to his solo-401(k). His Schedule C net income will be about $40,000 for 2009. His university job (he's a department head) pays $108,000.

I know to reduce his employee 402(g) maximum contribution to his solo-401(k) by the amount he contributes to his employer sponsored 403(b). But because he already maxes out his 6.2% Social Security contribution from his employement income, can the maximum solo-401(k) employer contribution be modified to

.20 X (net SE income - 1/2 (.029 X SE income)) ?

And another thing I've always wondered about......(this does not apply to this professor, as he has a group helath plan through the University)....for SE individuals who deduct their health insurance premiums, would this ATL deduction also have to be added to the 1/2 SE tax, and then this sum deducted from the net SE employment per the above equation?

thanks

BruceM

[Guest BruceC]

Wooooops.....I think I found the answer to my first question......

I need to complete the LONG schedule 1040SE to determine his SE tax for self employment!

Dah

But I would appreciate any response to the second question.

BruceM