It's possible you did over-fund your Solo 401K.
According to IRS One Participant 401k Plans:
When figuring the contribution, compensation is your “earned income,” which is defined as net earnings from self-employment after deducting both:
- one-half of your self-employment tax, and
- contributions for yourself.
Use the rate table or worksheets in Chapter 5 of IRS Publication 560, Retirement Plans for Small Business, for figuring your allowable contribution rate and tax deduction for your 401(k) plan contributions. See also Calculating Your Own Retirement Plan Contribution.
If you’ve exceeded the limit for elective deferrals in your 401(k) plan, find out how to correct (hyperlink) this mistake.
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