Solo Roth 401K

Submitted by D S on Tue, 2024-07-30 15:52

I make gross 24K from SE, and I have expenses of 2K, the my net earnings would be 22K correct?

Let’s say SE tax is 15.30%.

Then it would be my net earnings (22K) X SE TAX  15.30%=$3366      3366/2= 1683

Then it would be 22K – 1683= 20,317

The $20,317 is the most I can contribute to my Roth 401K plan?

Thanks for all your help!

DS



Submitted by Alan - IRA critic on Tue, 2024-07-30 16:13

Correct as to the max Roth 4o1k contribution.

Further, you can also max out your Roth IRA, using the same net earnings you used for the Roth 401k contribution – as long as your MAGI for a Roth IRA contribution is not over that limit.

Submitted by D S on Tue, 2024-07-30 22:58

Thanks so much!

 

DS

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