solo 401K contribution for 2015
I have a schedule C income of 100,000
Is it correct that I can open a 2015 solo 401K account now and contribute and deduct the following for 2015 now:
elective deferral 18,000
catch up (63 years old) 6,000
profit 100,000
1/2 se tax -7,065
92,935
X 20% 18,587
Total contribution 42,587
Would the entire 42,587 go into a single solo 401K account?
Are there any tax or other filings for a solo 401K plan?
Thank you for your kind assistance
Mike
Permalink Submitted by Alan - IRA critic on Mon, 2016-03-28 16:28
No, your solo K must have been established by 12/31/2015 including document preparation. You still have time to open a SEP IRA however, but your contributions will be far less.
Permalink Submitted by mike silvers on Mon, 2016-03-28 16:33
Thank you but for next year (2016) if I open the account before 12/31/16 is the 42,587 contribution and deduction as calculated above correct?Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2016-03-28 16:40
Yes, the figure is correct. There are no plan filings until the balance reaches 250k. The contribution can be made to a single solo K account.