I will have $22,000 of self-employment income on Schedule C and no other income. I will contribute the maximum employee deferral of $19,500 to my solo Roth 401k. Per IRS rules, I can also contribute up to 20% of net income as an employer contribution to a solo traditional 401k. Let’s say I do $3,500. But that adds up to $23,000 in total 401k contributions for the year, which is $1,000 more than my total income. Plus, I’m contributing $6,000 in the same year to my Roth IRA, for a grand total of $29,000 in retirement account contributions for the tax year. Can I do this?
