We're looking to setup a Defined Benefit Plan for 2022 which was not in the works before but thanks to SECURE 2 Act, we can still do it after December 31st.
Not anticipating this we maximized our Solo 401k contributions. Wife and I both have ~300k NET each on SE income. Wife also has W2 job so she took 61k in profit sharing and I did 20.5k + 40.5k to get to 61k.
The DBP plan actuary wants us to contribute 300k (150k each) for 2022. However the actuary thinks we need to take out all the profit sharing contributions. Is that necessary? What is the maximum limit for solo 401k and DBP? There are no errors returned by TurboTax when I leave the contributions as they are on 401k and add the DBP contribution as well.
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The contribution limit for a defined benefit plan is any amount up to the plan's unfunded liability as determined by your actuary. Your 401K contributions should have no bearing on it.
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