topic Solo 401K Contribution in Business & farm

Solo 401K Contribution

jinghai2001 — Tue, 24 Feb 2026 07:39:34 GMT

Can some one help me with Solo 401K Contribution question?

I am planning to start self-employment and set up Solo 401K. But I do not have income yet. Can I contribute to the Solo 401K ?

Thanks.

Re: Solo 401K Contribution

VolvoGirl — Sun, 22 Oct 2023 03:55:25 GMT

You need to have income. Which is a Net Profit on Schedule C for self employment. You can contribute to a 401K up to the amount of your Net Profit reduced by 1/2 of the SE tax OR to the max contribution allowed for a 401k whichever is Less. @dmertz

Re: Solo 401K Contribution

jinghai2001 — Sun, 22 Oct 2023 04:10:40 GMT

Thanks a lot for helping out.

Re: Solo 401K Contribution

dmertz — Sun, 22 Oct 2023 12:46:14 GMT

There are more limitations than VolvoGirl mentioned. I suggest looking at the calculation on the Deduction Worksheet for Self-Employed in Chapter 5 of IRS Pub 560: https://www.irs.gov/pub/irs-pdf/p560.pdf