Hello,
I'm not sure if I've over-contributed to my Solo ROTH 401k or not:
i) I contributed $18,000 to my Solo ROTH 401k for 2021 and $200 to my Solo Individual 401k for 2021
ii) When I have TurboTax calculate my max. Self-Employed Retirement Deduction allowed, it gives me a total of $17,395
iii) In reviewing the IRS documentation for Solo 401k plans (https://www.irs.gov/retirement-plans/one-participant-401k-plans), it states: "You must make a special computation to figure the maximum amount of elective deferrals and nonelective contributions you can make for yourself. When figuring the contribution, compensation is your “earned income,” which is defined as net earnings from self-employment after deducting both: i) one-half of your self-employment tax, and ii) contributions for yourself.
***However, I'm not sure if this applies to both the Individual Solo 401k plan AND the ROTH Solo 401k plan, or just the Individual (deductible) plan??**
iv) My Net Earnings are > $18,000, however, if I subtract out the deductible portion of my Self-Employment tax from my Net Earnings, my total becomes less than $18,000
v) TurboTax isn't giving me any errors re: over-contributing to my Solo ROTH 401k
vi) Is my Solo ROTH 401k contribution of $18,000 okay for 2021, or do I need to reduce the contribution of both Solo 401k contributions to TOTAL $17,395?
Thank you!
PS
