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Updated over 8 years ago,
Question about Max employer contribution on solo 401k
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