Thank you very much for your reply. I actually probably do not have sufficient compensation to maximize the employee Roth contribution. I have a net income (from Schedule C) of 28,363. With an online calculator, I am getting the following maximum allowed contributions for my income:
- An employee contribution of $22,500 to Roth 401k
- An employer contribution of $1,929.61 to regular solo 401K. It is 20% of (business income ($28,363) minus the deduction for one half of my self-employment tax ($2,003.78))
- A catch-up contribution of $1,929.61 that I assume I can allocate to Roth 401K
Does it seem correct to you? TT tells me I can defer a maximum amount of $24,429 to a 401k plan. It does not tell me that I have excess contributions when I enter the above numbers: (22,500 + 1,929) to Roth 401K and 1,929 to regular solo 401k. Thanks in advance.
