dragondon Posted December 22, 2022 Posted December 22, 2022 I have a client with a solo 401k who contributed the max deferrals for 2022 but would like to make after tax contributions to get to the 61k limit. Their compensation this year was 40k so can they contribute more then 100% of their compensation to their 401k in after tax dollars?
C. B. Zeller Posted December 22, 2022 Posted December 22, 2022 No. The annual additions limit is equal to the lesser of $61,000 or 100% of compensation. In this case, the smaller of those two is 100% of compensation, which is $40,000. If they already contributed $20,500 in deferrals then the maximum after-tax contribution they could make would be $19,500. Luke Bailey 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
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