I left federal service early in 2022 to pursue self-employment as a sole proprietor (no employees). During my time in federal service, I contributed to the government Thrift Savings Plan (TSP), where I also received a 5% match. Upon starting my own small business, I opened a Solo 401(k) to contribute tax deferred money as both employee and employer.
For the employee contributions (elective deferrals), I understand I am limited to $20,500 for 2022, which includes the contributions I made in my TSP earlier in 2022.
For the employer side (employer nonelective contributions) of the Solo 401(k), my limit is 20% of my net profit after subtracting half the self-employment tax (not to exceed $61,000 for the elective and nonelective).
What happens to the match I received from the TSP during my time as a federal employee for 2022? Do I need to include this in my calculations for my Solo 401(k) or is this separate?
