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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?
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Answered in 29 minutes by:
3/13/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,729
Experience: Taxes, Immigration, Labor Relations
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- 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

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Lev
Lev, Tax Advisor
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Customer reply replied 1 month ago
awesome. thank you!
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