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.
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.
Comment