dmertz
Level 15

Get your taxes done using TurboTax

Total 401(k) contributions are never permitted to exceed net earnings as defined for this purpose.  Net earnings are defined as net profit (Schedule C line 31) minus the deductible 50% of self-employment taxes.

 

If your net profit of the two businesses combined is zero or less, you have no net earnings to contribute to a 401(k).