Self Employed maximum contribution/SE tax

A self-employed individual over age 50 has net Schedule C profit of $22,000 and sponsors a 401(k).  No other employees and he has no wages or other business income.   He and his spouse have lots of other taxable income such that they would like to maximize  his 401(k) contribution/deduction.

His SE tax deduction is $1,554.   Is his maximum 401(k) deferral:

1.  $22,000
2.  $22,000 - $1,554 = $20,446
3.  Other?

Plan compensation definition in this plan includes the deferral.

Thanks. 

54 minutes ago, shERPA said:

A self-employed individual over age 50 has net Schedule C profit of $22,000 and sponsors a 401(k).  No other employees and he has no wages or other business income.   He and his spouse have lots of other taxable income such that they would like to maximize  his 401(k) contribution/deduction.

His SE tax deduction is $1,554.   Is his maximum 401(k) deferral:

1.  $22,000
2.  $22,000 - $1,554 = $20,446
3.  Other?

Plan compensation definition in this plan includes the deferral.

Thanks. 

 

I will take door number 2, Monty!  Yes, I'm sure!

1 hour ago, Larry Starr said:

I will take door number 2, Monty!  Yes, I'm sure!

Thanks Larry.