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Level 3
posted Aug 28, 2025 11:12:43 AM

How do I calculate the profit sharing amount for my individual 401K as a sole proprietor?

Hello community.  I am thinking of opening an individual 401K (95% of my income is 1099, self-employment and 5% is from an LLC as passthrough).  My tax extension deadline is 10/15/25.  I know that I cannot make elective deferrals and catch up contributions retroactively for 2024.  However, I understand that I can still make the profit sharing contributions (approx 25% of net self-employment inc.).  TT has the Maximize button for the individual contributions BUT I don't see how I can calculate the Employer (Profit Sharing) contributions to see how much it might impact my State Tax liability for California.  From other TT posts, I learned there is no impact on Federal taxes in terms of a deduction.  I would need to know how to make this calculation anyway for the 2025 tax year so looking for some guidance.  Thanks.

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