I have a solo k as a sole proprietor (no LLC). From what I understand, the only taxes deferred are federal income tax. FICA taxes are still paid but my real question is are state income taxes deferred as well? I live in New York City and on my state return it dropped the FULL income of my business w/o taking into account the deferred contributions to my solo k (which federally is nearly all of my income). Am I really paying 10+ percent state tax on my solo k contributions and not getting a state income tax deferment as well as federal?
