Contribution in excess of Sole prop. Earned Income

[AdKu]

If sole prop total profit is right at 10K.

Can client make a non deductible contribution of 10K to my Roth 401K?

And still allowed to put 10K in the defined benefit as well?

[Lou S.]

If he puts $10K into a DB plan his income is now $0 and he can make no deferral, ROTH or traditional.

If his income is $10K he can make a ROTH or traditional 401(k) of $10K.

[spiritrider]

Notwithstanding the fact that the maximum contribution is net business profit - 1/2 SE tax, there is but one double dip of income that I am aware of.

If you make a Roth 401k contribution, that does not reduce the income available for either a traditional IRA or Roth IRA.

Also, be aware of the fact that retirement plan contributions deductible on line 28 reduce the availability of that income for the Self-Employed Health Insurance deduction.