dmertz
Level 15

Retirement tax questions

From net profit on Schedule C of $15,000 you must subtract the deductible portion of self-employment taxes, $1,060, leaving $13,940 as the maximum permissible total contribution.  Because this is less than the maximum amount of elective deferrals, this is all allocated to elective deferrals (or Roth contributions), leaving nothing to contribute as an employer contribution.

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