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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2308
Experience:  Certified Public Accountant
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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: 1 year ago.
Category: Tax
Expert:  Mark Taylor replied 1 year 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 1 year 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.