bzorc Posted February 28, 2020 Posted February 28, 2020 Sole proprietor has net income of $25,000 and maintains a solo 401(k) Plan (please ignore the self-employment tax issues here) Want to maximize the amount put into the Solok. Is the amount that can be contributed for 2019 $25,000 (sole proprietor is over 50), or $30,000 ($25,000 deferral plus 20% of net income of $5,000)? Reading the IRS publication on this does not provide a definitive answer. Thanks for any replies.
AndyH Posted February 28, 2020 Posted February 28, 2020 Being a Solok the plan document might be more restrictive, so you should check that. But in a normal plan the maximum would be the deferral plus .25/1.25 x $25,000 of $5,000. imchipbrown 1
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