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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I made 50K of w-2 salary from my S-Corp in 2012. questions: 1.

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I made 50K of w-2 salary from my S-Corp in 2012.
1. I uinderstand that i can contribute first 17K of sallary for my personal contribution to my solo-401k plan? Correct?
2. since i made 50K of w-2 my company can contribute 25% of that on top and it measn that 12.5k can be added.
3. After all of these contributions are made - can i still add 5K to my regular IRA?
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question, and thanks for using Just

1) Yes, this is correct.
2) Yes, your company can add an additional 12,500 as a match - that is correct.
3) Yes, but your deduction may be limited because you have a retirement plan at work. If $50,000 is your only income you should be able to deduct your IRA contribution You can CLICK HERE to read about the IRA deduction limits when you are covered by a plan at work.

Please let me know if you need anything additional. Thanks again for using and have a great day.

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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

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Thank you for the positive rating. Please come back and see me next time you have a question. It was a pleasure working with you today. Have a great afternoon.
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