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362
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221
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Ray Slack
  • Investor
  • White Haven PA
221
Votes |
362
Posts

Question about Max employer contribution on solo 401k

Ray Slack
  • Investor
  • White Haven PA
Posted

3 quick questions.   I setup a solo 401k and wanted to confirm something.   I am personally listed as the employer and employee.  I know I can contribution $18k as the employee and 25% of income as the employer.  Questions.

1. The employer contribution (25% cap ) is based on my Net profit on my Schedule C after all deductions. Correct?

2. Both the combined Employee and Employer contributions are put on line 28 of 1040 together right?

3. I'm thinking of starting a S corp this year and paying myself that way. Do I need to have all new documents created for my solo 401k plan since the employer would be changing from myself (sole prop) to my sub chapter S corp?  Or can I just create an amendment to the plan docs?

Thanks for any input
Ray

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