In 2023, aggregate contributions can reach up to $66,000 if you are under 50 and $73,500 if you are 50 or older.
While those are the absolute maximums that can be contributed to a solo 401(k), the amount you can contribute may be different. That's because solo 401(k)s come with a little nuance. With a solo 401(k), you can make contributions in 2 ways: as the employee and as the employer. Each portion of that equation has a different limit that adds up to that hypothetical max of $66,000 or $73,500 for those 50 or older.
In 2023, you can contribute up to $22,500 pre-tax dollars to your solo 401(k) as an employee, the same amount that a regular employee can contribute to a traditional 401(k). If you're at least 50 years old, you can add a catch-up contribution of $7,500, for a total employee contribution of $30,000.1 You can choose to contribute up to 100% of your compensation, provided you don't exceed these limits. ..... you are also allowed to contribute up to 25% of earned income (meaning after Social Security and Medicare taxes) for the employer portion, or profit-sharing contribution.2 The IRS limits the amount of compensation that determines retirement contributions; for 2023, the limit is $330,000. As an example, a consultant under 50 with earned income of $100,000 can put in $22,500 as an employee and up to $25,000 (25% of $100,000)3 as the employer for a total of $47,500. ...... from URL https://www.fidelity.com/learning-center/smart-money/solo-401k-contribution-limits#:~:text=In%202023...).
