Profit Sharing Solo 401k

Use the Solo 401k Contribution Comparison to estimate the potential contribution that can be made to a Solo 401k plan compared to Profit Sharing SIMPLE or SEP plan.

Profit sharing solo 401k. A Solo 401 k is similar to the 401 k or profit-sharing plan you may have if you worked for a larger employer. Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. The Solo 401 k is a little bit trickier than other self-directed plans because it involves two different kinds of contributions.

Your Solo 401k retirement plan is tax deferred. Of that number she could contribute for 2017. A quarter of the participants self-employment compensation or 20 in the case of a sole.

How can I start a profit-sharing plan. If you and your spouse both contribute to the Solo 401k plan you can each contribute 57000 or 63500 depending on your age. There is often no direct filing requirement for your Solo 401k.

Once youre ready to begin the process be sure to contact legal and financial advisors who have. Your maximum Solo 401k contribution is 57000 per participant per year. As the employer you can make an additional contribution known as the profit-sharing contribution.

Open a Self-Employed 401 k Call 800-544-5373 to speak with a small-business retirement specialist to see if this plan is right for you. Compare all small-business retirement plans. For solo 401K contributions the compensation of the owner of the business can be defined as the medicare wages which is reported on their W-2.

In short the IRC 402 g rules allow employees to make tax-deductible or. Same dollar amount method. I up to 24000 as an employee contribution less any amount contributed as an employee contribution to her 401k plan sponsored by her daytime employer.