jcomunale
		
		
		
		
		
		
		
		
	
			
		
		
			
					
		
	
	
			Level 2
		
	
				
		
	
		
			
    
	
		
		
		03-17-2024
	
		
		07:29 PM
	
	
	
	
	
	
	
	
	
	
	
	
	
	
		
	
				
		
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						My client did not make an elective deferral yet the program is computing more than 25% of income as the max deferral
					
				
			
			
				
			
			
				
			
			
			
			
			
			
		
		
		
	
	
	
		
			
				
						
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			Level 15
		
	
				
		
	
		
			
    
	
		
		
		03-18-2024
	
		
		09:47 AM
	
	
	
	
	
	
	
	
	
	
	
	
	
	
		
	
				
		
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I thought the solo 401k has a different limit than a SEP?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
			Level 15
		
	
				
		
	
		
			
    
	
		
		
		03-18-2024
	
		
		10:07 AM
	
	
	
	
	
	
	
	
	
	
	
	
	
	
		
	
				
		
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from IRS. Link. https://www.irs.gov/retirement-plans/one-participant-401k-plans
Contribution limits in a one-participant 401(k) plan
The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities. The owner can contribute both:
- Elective deferrals up to 100% of compensation (“earned income” in the case of a self-employed individual) up to the annual contribution limit:
- $23,000 in 2024 ($22,500 in 2023; $20,500 in 2022; $19,500 in 2020 and 2021), or $30,000 in 2023 ($27,000 in 2022; $26,000 in 2020 and 2021) if age 50 or over; plus
 
 - Employer nonelective contributions up to:
- 25% of compensation as defined by the plan