Loretta P
Employee Tax Expert
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Hello MsLeslie,

 

You didn't mention what type of entity your business is, for example sole proprietor (filing a Schedule C with your Form 1040), S-Corp (filing Form 1120-S), partnership (filing Form 1065).

 

If you already have the solo-401K set up, you are only able to contribute to it from your self employment income, you are not able to use any of your w-2 wages to contribute to the solo-401K.

 

You will still be limited to the elective deferral limit for 2024 of $23,000 for individuals under the age of 50 and those who are 50 or older can add an extra $7,500 as a catch-up contribution, making the contribution limit $30,500. 

 

If the elective deferral limit is reached by contributions from the w-2 wages, then only the employer portion of the contribution could be made into the solo-401K.

 

Retirement plan FAQs regarding contributions - S corporation 

 

One-participant 401(k) plans 

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