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Level 3
posted Jun 10, 2021 11:16:28 AM

Can I consider using the compensation paid to myself from a forgiven PPP loan toward a contribution to my solo 401K?

Can I?  Or, because the compensation isn't  considered as 'earnings', can't I?  

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1 Replies
Level 15
Jun 10, 2021 1:15:58 PM

PPP loan proceeds are NOT EARNED INCOME so it cannot be used for an 401K contribution.