2022/2023 Solo 401k Contributions Guide w/ Secure Act 2.0 Update (Sole Proprietors/1099 Contractors)

[@ericaogle5885]

Thank you 🙏 Saving this as a resource

[@Tamara954]

I watched the webinar but didn't hear any mention of Traditional IRA contributions (in conjunction with Solo 401K contributions). I want to make a 2023 tax year Traditional IRA contribution first (I'm over 50), so $7500, THEN plan the amount to contribute for Solo 401K. Does the Maximum Solo 401K amount have to be reduced by the Traditional IRA amount? So if 2023 max solo 401K is reduced by the Traditional IRA $7500 amount, does the Solo 401K amount have to be reduced from the Employee part (up to $22,500), the Catch up part (up to $7500), or the Employer part (20% of Net business income)?

[@mysolo401kfinancial3]

This confirms that one does not need to aggregate or reduce how much one can contribute to the solo 401k by contributions made to an IRA.

[@AnnPilotFishSwimmingDownstream]

Thank you for this helpful content!

[@mysolo401kfinancial3]

Glad it was helpful!

[@angiewaldauer8282]

If you don't file an extension can you still make 2022 contributions through the extension deadline?

[@mysolo401kfinancial3]

Please see response posted on our My Community site: mysolo401k.net/mycommunity/forums/discussion/can-i-make-2022-solo-401k-contributions-if-i-didnt-file-for-an-extension/

[@mysolo401kfinancial3]

Please join My Community to participate & ask questions (it's free! all are welcome!): mysolo401k.net/mycommunity/wp-login.php

[@jamesandrewh1813]

As a 1099 sole prop, can both the employer (profit sharing) and employee contributions to your solo 401k come from the same personal checking account. Or does the profit sharing contributions have to come from a separate "business checking account" as I only have personal at this time and all the money comes into that account

[@mysolo401kfinancial3]

Contributions may come from a personal or business account

[@khongcolong]

James, only entities such as S-corp[its own EIN] or C-corp [its own EIN] can adopt a SOLO401K for you. A sole pro is YOU [your SS#] so you cannot set up a retirement account for yourself. Once you establish a company c-corp/s-corpare properly set up a solo401K then the contribution of employees/ employers will come from seperate checking accounts.

[@mysolo401kfinancial3]

That is certainly not correct. A sole proprietor may certainly set up a solo 401k if such person reports earned self-employment income (e.g. on Schedule C) with no full-time non-owner/non-spouse w-2 employees working for any business owned by such person or a spouse (if any). Just as one example consider IRS Pub 560 which is the landmark guidance for retirement plans for self-employed individuals and discusses the mechanics of a sole proprietor setting up and contributing to a Solo 401k plan.