Need Help or Advice? Log In Sign Up. $224,000 in W-2 income from your S Corp is the … This is for freelancers, independent contractors and small business owners. Solo 401k Contribution Calculator allows you to calculate the maximum amount you can contribute to your plan. The IRS clearly recognizes that an S-corporation can sponsor a Solo 401k (otherwise known as an Individual 401k or self-directed 401k). Here's a SEP-IRA calculator to figure the annual contributions permitted. Solo 401k plans have several benefits that are unique compared to other self employed retirement plans such as a SEP IRA or Keogh. If you had a single-member LLC or C-corp Solo 401(k) in 2019, the contribution deadline was April 15, 2020. Due to special tax rules, you can contribute more to this type of plan than other comparable retirement plans. Where do I report the new 401K and contributions made? SEP IRAs and solo 401(k)s are tax-deferred retirement savings vehicles for small business owners. (my numbers: 60K W2 wages, 19k Employee contribution, 15K Employer match) . If you have a sole proprietorship or single-member LLC, this is your net income (gross revenue minus expenses). Your business can be a sole proprietorship or a formally structured LLC, C Corp or S Corp. I made 200K as a self-employed consultant for Year 2015. Recommended Posts . Guest notmyhand. Answer: A Solo 401k plan is a 401k plan for owner-only businesses with no full-time w-2 employees (other than the owner(s)). I am currently employed in a company and on payroll, so I get a salary and my company also has a 401K plan so I contribute to that. Self-Employed 401(k) Contributions Calculator | Comments: 0. From the authors of Limited Liability Companies for Dummies. If you had an S-corp or partnership LLC, the deadline was March 15, 2020. Regarding setting up a Solo 401k - you can't setup two plans, but when you do you should use your S-corp, not the LLC since you can only use earned income to make contributions to the 401k. S Corp Solo 401k - Can health premiums count as wages? The employee 401k contribution is easy because it is just taken out of my paychecks. Close. S Corp 401k Contribution Limits 2018/page/8 How To Calculate Your Solo 401k Contribution. But a solo 401k has a profit sharing component that acts like a SEP. With a W2 of $300k, the owner can do $57k if under 50 and $63.5k if over 50. Your fastest way to reach your contribution limit is through a 401k plan. I am trying to wrap my head around how much the limit is on the Employer contribution. Rental income in your LLC is considered to be 'passive' not 'earned' and therefore is … S-Corp owner / employee with new 401K, Made paycheck contribution only, no S-Corp participation. Forming an S-corporation can help save taxes; this calculator helps you estimate your potential savings. It comes with a built-in Roth sub-account with no … They’re similar to each other but with one big difference. S Corp 401k Contribution Limits 2018/page/8 - For 2020, your individual 401 (k) contribution limit is $19,500, or $26,000 if you’re age 50 or older. Thanks for creating this calculator! That sounds simple enough, but like anything having to do with taxes, there’s more that goes into it than that. If you are incorporated, then only use your W-2 wages when using the calculator. S Corp 401k Limits - For 2020, your individual 401 (k) contribution limit is $19,500, or $26,000 if you’re age 50 or older. I want to put away $25K as part of retirement savings. My current setup is a solo 401k with Fidelity, an S-corp (one-employee), and paying myself a certain salary. 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