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Level 1

If gross income from my business is $16000, and Turbotax calculated the business income as $12000 (after expenses), what is the max amount I can contribute to Roth 401K?

 
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Level 10

If gross income from my business is $16000, and Turbotax calculated the business income as $12000 (after expenses), what is the max amount I can contribute to Roth 401K?

You can contribute up to your net income from self-employment minus the deduction for one half of self-employment tax minus the deduction for self-employed health insurance premiums, if any.

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Level 10

If gross income from my business is $16000, and Turbotax calculated the business income as $12000 (after expenses), what is the max amount I can contribute to Roth 401K?

You can contribute up to your net income from self-employment minus the deduction for one half of self-employment tax minus the deduction for self-employed health insurance premiums, if any.

Level 6

If gross income from my business is $16000, and Turbotax calculated the business income as $12000 (after expenses), what is the max amount I can contribute to Roth 401K?

In your case, the maximum amount you can contribute to a self-employed Roth IRA is $12,000 which is the amount of your business net income (after deduction of expenses.

The maximum allowed by the IRS is $18,500 (plus a catch-up contribution of $6,000 if 50 or older) limited to your self-employment net income.