Thank you! If you happen to know what part of the tax code or IRS publication supports that correction, I'd appreciate that. (Otherwise, I'll figure it out myself!)
Here's a variation that I am also considering and would like feedback. What if I modify my $30,000 Schedule C net profit by including an expense on Schedule C Line 19 "Pension and profit plans" for $5,656, representing the Employer contribution for me personally, to my traditional solo 401(k)? Then my Schedule C net profit is reduced to $24,344. From that value, I compute SE tax and subtract half of it to get to $22,624 net earnings. I then designate all of that as an Employee deferral. That increases the total for these two contribution to $28,280, which is $399 higher than the total you give. Can I do it this way? (I am assuming that if this is allowed, it doesn't change that I can still give another $7,000 to my Roth IRA, but if that's wrong, please explain.)
Thank you!
