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?

[Zbucklyo · Accepted solution]

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.

[MinhT]

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.