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Tax, SDIRAs & Cost Segregation

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Shera Gregory
  • Investor
  • Richmond, VA
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347
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Contributing 100% of salary to SD 401k as ROTH

Shera Gregory
  • Investor
  • Richmond, VA
Posted Jun 20 2020, 14:59

I have a SD 401k which has an LLC as the plan sponsor. I take distributions from the LLC as the single member. I want to start putting 100% of my distribution into the 401k as a ROTH contribution. If my normal distribution would be, for example, $1,000 can I put the full $1,000 into the 401k or do I need to pay estimated federal income tax out of that $1,000 and only contribute the difference? I think I can pay the self-employment taxes separately since that's not normally withheld by the LLC anyway.

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