Question

Maximized deferral in relationship to employer contribution for self-employed 401K IRA

Forum|Forum|4 years ago
April 5, 2022
1 reply
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I am self-employed and have deferred the max employee portion of $19,500. I want to maximize my deferral, and am curious why the 'employer matching (profit sharing) contribution' does not have an impact on the maximum contribution when I check the box to 'maximize.' If I have already contributed $3000 to the employer match, it has no impact on the maximized amount (to contribute by tax day).($6517) Is this right? Is there a limit to the employer match? (seeing I am the employee and the employer)?? Do I need to subtract the $3000 from the $6517 to come up with the actual amount to contribute before tax day.

TurboTax Home & Biz Windows

R

RobertB4444

@DCW007 If this is a Solo 401K you can contribute as both an employer and employee up to the maximum of $58,000.

If this is part of a retirement plan that you offer to all of your employees then you are limited to what you can do for yourself by what you do for them.

If the second is the case you have until the due dat of the return to open and contribute up to 20% of your self-employed profit to a SEP account. If it's the first then you're nowhere near the limit.

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