How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark Taylor Your Own Question
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1667
Experience:  Certified Public Accountant
93680669
Type Your Tax Question Here...
Mark Taylor is online now
A new question is answered every 9 seconds

I have I SOLO 401K where I have contributed with $10,000 as

Customer Question

I have I SOLO 401K where I have contributed with $10,000 as employee deferral ( I am solo proprietorship and the only employee) also I have contributed with $12,000 as employer sharing profit. Additional I work as employee with a company where I have a traditional 401k with $6,000.
How much can I deduct like deferral in this case?
Submitted: 8 months ago.
Category: Tax
Expert:  Mark Taylor replied 8 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment to prepare your response.

Expert:  Mark Taylor replied 8 months ago.

So for the elective deferral portion you can contribute $18,000 (if you are 50 or older this amount increases by $6,000). Currently you are at $16,000 between the solo 401k and your traditional 401K. This would mean you could contribute another $2,000. The profit share plan portion limit is $35,000. This of course depends on your earned income in the business. So the total amount of deferral between the elective and non elective (profit sharing) is $53,000.