I have a client whose spouse has net earnings of $8,000 from a schedule C. She's already contributed $5,000 to a non-deductible IRA for 2008. AGI on the joint return is 200k. Spouse wants to contribute the max to her Solo 401(k). Would the max 401(k) contribution be net earnings from Schedule C of $8,000, or is this reduced by the $5,000 non-deductible IRA contribution so she can only contribute $3,000 to her 401(k)? In other words, can she contribute $8,000 to the 401(k) AND $5,000 to the non-deductible IRA? Any help appreciated! Thank you.
Comment