Hi all Another solo 401 k question.
We set up a solo for 401K for my spouse and she had a bit of independent contractor income for 2016. Approximately $16,000.
Question Can she legally contribute all of the 16,000 in the employee portion of the solo for 401K since Max is 18k, therefore having no taxes due on the IC portion, My understanding is this is due by the mid April filing deadline, so we still have time to contribute. My understanding is the 25% of the income is only for the employer portion. Is that correct?
Thanks you all in advance for the response.
We set up a solo for 401K for my spouse and she had a bit of independent contractor income for 2016. Approximately $16,000.
Question Can she legally contribute all of the 16,000 in the employee portion of the solo for 401K since Max is 18k, therefore having no taxes due on the IC portion, My understanding is this is due by the mid April filing deadline, so we still have time to contribute. My understanding is the 25% of the income is only for the employer portion. Is that correct?
Thanks you all in advance for the response.
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