If I max out my W2 job 401k employEE contributions for 2023 of 22,500 (under 50), what is the theoretical maximum I could contribute to a solo 401k using just employER contributions (assuming 1099 work as a sole proprietor)?
I understand that any employEE contributions I make to my W2 401k take away from available space in a solo 401k for employEE contributions, but how does that affect the employER contributions?
I have playing around with the numbers on the solo 401k calculators from Mike Piper and the Finance Buff, which seem to be the top authorities in this area. Using 2023 limits, if I input $500K for W2 job gross wages and $500K for net self-employed profit (just putting these numbers in to get past/max out the other limiting calculation factors) along with a 22,500 contribution for a W2 job 401k deferral, the calculations show the following amounts left to contribute into a solo 401k:
Employee contribution of $0
Employer (profit-sharing) contribution of $66,000
I was under the impression that the employEE and employER contributions for all 401ks combined (W2 and solo) are limited to a combined total of $66,000, which would leave $43,500 left to contribute to a solo 401k as employER/profit sharing contributions. Is this correct, or is it actually a $66K limit of employEE and employER contributions just into a solo 401k? So, if your solo 401k employEE contributions are zero (because it was all put into a W2 401k) does that open up more available space for employER contributions into the solo 401K?
I understand that any employEE contributions I make to my W2 401k take away from available space in a solo 401k for employEE contributions, but how does that affect the employER contributions?
I have playing around with the numbers on the solo 401k calculators from Mike Piper and the Finance Buff, which seem to be the top authorities in this area. Using 2023 limits, if I input $500K for W2 job gross wages and $500K for net self-employed profit (just putting these numbers in to get past/max out the other limiting calculation factors) along with a 22,500 contribution for a W2 job 401k deferral, the calculations show the following amounts left to contribute into a solo 401k:
Employee contribution of $0
Employer (profit-sharing) contribution of $66,000
I was under the impression that the employEE and employER contributions for all 401ks combined (W2 and solo) are limited to a combined total of $66,000, which would leave $43,500 left to contribute to a solo 401k as employER/profit sharing contributions. Is this correct, or is it actually a $66K limit of employEE and employER contributions just into a solo 401k? So, if your solo 401k employEE contributions are zero (because it was all put into a W2 401k) does that open up more available space for employER contributions into the solo 401K?
Statistics: Posted by misgnomer — Sun Feb 25, 2024 4:06 pm — Replies 0 — Views 10