Solo 401k Contribution Calculator
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 the “Submit” button to see your results. A PDF document will be generated with the option for you to save or print it. 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).
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 Contribution Limits
Solo 401k plan contributions are comprised of two components:
- On the employee side – an employee salary elective deferral
- On the employer or business owner side – an employer profit-sharing component
The maximum contribution limit for 2018 is $55,000.
Those who are over 50 years of age are able to take advantage of an extra $6,000 catch-up contribution, which increases their maximum to $61,000.
The employee elective deferral can be made with pre-tax or after-tax (Roth) dollars. The maximum salary deferral amount for 2018 for those under 50 years of age is $18,500.
Those who are over 50 years of age can use the catch-up provision and contribute an additional $6,000 to their plan.
The profit-sharing component of a Solo 401k plan contribution is determined by the type of business and is a percentage of the net business income or compensation.
For example, the business can make a 20% contribution to the plan if the business is 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 contribution is 25%.
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 it. The same contribution limit applies to spouses. With that in mind, the maximum yearly contribution for both spouses combined can be up to $122,000 assuming that they are over 50 years old. Otherwise, the maximum contribution would be $110,000.
This Solo 401k Contribution Calculator allows you to accurately estimate your contributions. Be sure to bookmark this page for future reference.
Alternate investment options you get with a Self Directed Solo 401k:
Stock & Funds
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