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Solo 401-k Contribution Deduction Limit

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    Solo 401-k Contribution Deduction Limit

    Customer (MFJ) is over age 50 and files a schedule "C" with approximately $100K net - with no employees.
    He has a solo 401-k plan with Vanguard that offers a Roth option.
    My question pertains to the employer contributions he plans to make for 2022.
    In 2022 he plans to make :
    - $27-K in employee salary deferral contributions into the Roth portion of the 401-K.
    - $7-K each into individual Roth IRA'S for himself and his spouse.
    If this taxpayer nets $100-K on his "C" and his gross allowable employer contribution pre-tax is 25%,
    would his employer contribution & deduction be limited to the 18.587 % of his net "C" per TTB 13-14 ?

    Thanks for comments.




    #2
    Yes, assuming he does not exceed the Soc. Security maximum earnings for the year.
    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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