Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Individual contributed to an employer sponsored 401k in the…

Individual contributed to an employer...
Individual contributed to an employer sponsored 401k in the amount of $7000 for 2017.Also contributed $5,500 to Roth IRA for 2017.They also want to contribute to Solo 401k for 2017:- 20% of business profit from their 2017 Schedule C
- $18,000 as employeeThe individual's wages were $45k and their business profit was $81k.QUESTIONS:
- Is all of the above allowable?
- Is the $18,000 401k contribution limit affected at all by their Roth or employer 401k contribution amounts?
Show More
Show Less
Ask Your Own Tax Question
Answered in 29 minutes by:
3/13/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,276
Experience: Taxes, Immigration, Labor Relations
Verified

- Is all of the above allowable?

Not all...

Total limit for employee's elective deferrals into 401k plan for 2017 is $18000

Employee catch-up contribution (if age 50 or older by year-end) is an additional $6000

Having two 401k plans is OK - but overall contribution may not be above that limit.

Se we have an excess contribution.
- Is the $18,000 401k contribution limit affected at all by their Roth or employer 401k contribution amounts?

Roth contribution limit is not affected - that is OK. There is a separated limit for traditional and Roth IRA contributions.

But 401k contributions are above the limit - and should be corrected.

In additional - there is a total contribution limit into all qualified retirement plans by both employee and employer - in 2017 - $54,000

Questions?

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,276
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 5 months ago
awesome. thank you!
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,276
33,276 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I have a tax question. Regarding 401K solo. I understand
I have a tax question. Regarding 401K solo.I understand that a self employed May make him maximum contribution of $18,000 for 2017 If other rules are meant like self-employment income limits etc.There… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
848 satisfied customers
I need a tax expert to help me determine our maximum
I need a tax expert to help me determine our maximum contributions for 2017. We have 2 companies (ES Design) where my wife is active in the business and paid herself 44,111 total wages) and a second c… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,276 satisfied customers
Lane, if I am both self employed and employed (both a
Hi Lane, if I am both self employed and employed (both a schedule A and C), what determines how much I can elect to defer to a solo 401K (from the perspective of both an employee and the employer, bot… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Second opinion] I'm a bit confused- I've got a W-2 via my
second opinion] I'm a bit confused- I've got a W-2 via my employer and I also have a 1099 from side jobs I've performed. I was told that you can have a solo 401K separate from my employer sponsored 40… read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,042 satisfied customers
I'm a bit confused- I've got a W-2 via my employer and I
I'm a bit confused- I've got a W-2 via my employer and I also have a 1099 from side jobs I've performed. I was told that you can have a solo 401K separate from my employer sponsored 401K and that my c… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,601 satisfied customers
Chad, I have a Schedule C realtor that turn 70 August of
Chad,I have a Schedule C realtor that turn 70 August of 2017. She will have earned income from her Schedule C. Is she allowed to contribute to a Traditional IRA and/or SEP IRA for 2017? If she has sel… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,276 satisfied customers
As a sole member LLC, I have a small business individual
Hello! As a sole member LLC, I have a small business individual 401K account. How much can I contribute as an employee and employer this year? Thanks.… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,601 satisfied customers
I am self employed sole proprietor (no employees) and I am
I am self employed sole proprietor (no employees) and I am over 50 years old. I contribute to a Roth IRA for $6500 per year. How much can I additionally contribute to a solo-401K (including employer c… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,276 satisfied customers
What is the maximum contribution to 401k and Roth 401k for
What is the maximum contribution to 401k and Roth 401k for 61 year old? Are they separate limits or are they combined?… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Is there a limit of 401K contribution per year for tax
Is there a limit of 401K contribution per year for tax payer? Can tax payer contribute more than 18000 through different employers?… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
2016 retirement contributions Husband gross W-2 $190k,
2016 retirement contributions Husband gross W-2 $190k, covered by 403b Wife $10k net from schedule C; no W-2 What are our options for contributions? IRA SEP Can we choose Roth or not for each/either? … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,276 satisfied customers
I have a client that between the wife and husband make over
I have a client that between the wife and husband make over $300,000/yr gross. They each contribute to a 401K at their respective jobs but have no other IRA's. I have heard they can each contribute up… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I have just recently retired this summer, and have not yet
I have just recently retired this summer, and have not yet started taking Social Security. My questions mainly involve what the rules are regarding IRA contributions. My "working " income for the year… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I own and am the only employee of an s-corp. Is there a way
I own and am the only employee of an s-corp. Is there a way that would benefit my bot***** *****ne more financially if I set something up through the company or am I ok just doing something tax-free o… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My employer offers 3 types of retirement accounts: employee
Good morning, My employer offers 3 types of retirement accounts: employee pre-tax 401k, roth 401k and post-86 after tax. In addition, I have a personal roth IRA at td ameritrade. I'd like to take adva… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I'm a sole proprietor and just opened a SEP with Fidelity as
I'm a sole proprietor and just opened a SEP with Fidelity as well as a Roth IRA. Can I maximize my Roth IRA $5,500 for 2015 and add to my SEP (25% of my net profit) for 2015 as well? Will my net profi… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How can I maximize tax savings for 2013 . Husband pays into
How can I maximize tax savings for 2013 . Husband pays into 401K I don't qualify for 401 K so I will contribute to Traditional IRA account for the year . What else can we do to lower tax liability at … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I do not have a 401k at my work, therefore I am considering
I do not have a 401k at my work, therefore I am considering going out on my own as a self employed individual so I can take greater advantage of a sep-ira versus the regular ira tat I can only contrib… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,276 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x