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June 1, 2019
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If my wife's self-employed income is $18,450 for the tax year, why is she only allowed to defer a maximum of $17,146 to a 401(k) plan, and not the whole $18,500?

  • June 1, 2019
  • 1 reply
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Best answer by Hal_Al

Since she is allowed to deduct half her self employment tax, only $17,146 of her income is subject to income tax. 

1 reply

Hal_Al
Hal_AlAnswer
Employee
June 1, 2019

Since she is allowed to deduct half her self employment tax, only $17,146 of her income is subject to income tax.