Solo 401K Contribution

[jinghai2001]

Can some one help me with Solo 401K  Contribution question?

I am planning to start self-employment  and set up Solo 401K.  But I do not have income yet.  Can I contribute to the Solo 401K ?  

Thanks. 

[VolvoGirl]

You need to have income.   Which is a Net Profit on Schedule C for self employment.  You can contribute to a 401K up to the amount of your Net Profit reduced by 1/2 of the SE tax OR to the max contribution allowed for a 401k whichever is Less.  @dmertz 

[jinghai2001]

Thanks a lot for helping out.

[dmertz]

There are more limitations than VolvoGirl mentioned.  I suggest looking at the calculation on the Deduction Worksheet for Self-Employed in Chapter 5 of IRS Pub 560:  https://www.irs.gov/pub/irs-pdf/p560.pdf