This Solo 401k Contribution Calculator allows you to calculate the maximum amount you can contribute to your plan. Enter the following info below and click Submit bottom. A pdf document will be generated giving you the option to save it or print it out. It is very important that you select the correct business type, please note that Sole-Proprietor is selected by default (if your business is a single member LLC, select the Sole-Proprietor type).
Solo 401k Contribution Calculator: What is the Maximum Amount You Can Contribute
This calculator is for informational purposes only and does not constitute, and should not be construed as, professional, legal or tax advice. Do NOT rely on the results from this calculator to make financial decisions. The results are merely an estimate. Situations vary and the tax laws change regularly. You should contact your tax or legal advisor for advice regarding your situation.
Solo 401k Plan Contributions Limits:
Solo 401k Plan Contributions are comprised of two components: on the employee side – employee salary elective deferral and on the employer or business owner side – employer profit sharing component. The maximum contribution limit for the year 2015 is $53,000, however, those who are over 50 years of age are able to take advantage of the $6,000 catch-up, which increases the maximum to $59,000.
Now, let’s take a look at each component separately. The employee elective deferrals can be made with pre-tax or after-tax (Roth) dollars and the maximum contribution amount for 2015 for those under 50 years of age is $18,000. This amount was increased by $500 from 2014. Again, those who are over 50 years of age can use the catch-up provision and contribute an additional $6,000 to the plan. The profit sharing component of Solo 401k plan contribution is determined by the type of business and is a percentage of the net business income or compensation. So the business can make 20% contribution to the plan if the business set-up as a single member LLC or sole proprietorship. If the business is set-up as a corporation, or multi-member LLC, the profit sharing component of the contributions is 25%.
Please note, that the combined maximum for both components is $59,000 for the year 2015 for those over 50 years of age, otherwise the maximum is $53,000. If your spouse decides to participate in the Solo 401k plan (assuming that he or she earns compensation from the business), he or she is also allowed to contribute to the plan. The same contribution limit applies to spouses. With that in mind, the maximum yearly contribution for both spouses can be up to $118,000 assuming that they are over 50 years old. Otherwise, the maximum contribution would be $106,000. This Solo 401k Contribution calculator allows you to accurately calculate your contributions, be sure to bookmark this page for future reference.