Need some help on Solo 401k for a Schedule C client. How is employer portion computed? How is employee portion computed. Where is it deducted = Schedule C or front of 10 40.
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It's deducted on the face of the 1040 in the adjustments section. I believe it's max 25% of of eligible payroll. Overall max contribution per eligible employee is 100% of compensation not to exceed 46K. I would ask the client to review the plan document, which should outline the details. -
Employee portion is an elective deferral of up to 100% of compensation up to applicable annual deferral limit for their age & annual additions limit (TTB1-3).
Employer portion is up to 25% of net SE income less contribution and less 1/2 SE tax (TTB13-16).
All deducted on front of 1040, not Schedule C.Comment
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