What is a Solo 401(k)?

Elective deferrals are contributions you make in lieu of salary. You can contribute up to the lesser of:

• 100% of: your compensation (if you’re a business owner) or your earned income (if you’re self-employed) 
• For 2024, $23,000 if you're 49 or younger or $30,500 if you’re 50 or older

Note: the limit is per person, not per plan, so ‌the total of all elective deferrals from all plans can’t go over the limit.

You can make employer nonelective contributions of up to 25% of your compensation as defined by your plan. For self-employed persons this compensation doesn’t include retirement plan contributions or the self-employment tax, which are deducted from your income. TurboTax will calculate these amounts for you (or tell you if you contributed too much to your Solo 401(k)).

For 2024, for those age 50 and over, the maximum total of elective deferrals, catch-up contributions (maximum $7,500), and employer nonelective contributions, is $76,500.