topic If my wife's self-employed income is $18,450 for the tax year, why is she only allowed to defer a maximum of $17,146 to a 401(k) plan, and not the whole $18,500? in Retirement tax questions

If my wife's self-employed income is $18,450 for the tax year, why is she only allowed to defer a maximum of $17,146 to a 401(k) plan, and not the whole $18,500?

rantax — Sat, 01 Jun 2019 18:18:42 GMT

Hal_Al — Sat, 01 Jun 2019 18:18:43 GMT

Since she is allowed to deduct half her self employment tax, only $17,146 of her income is subject to income tax.