2022

The solo 401k contribution limit for 2022 is $61,000. If you’re at least 50 years of age, you get an additional $6,500 in catch-up contributions, bringing your limit to $67,500.

2023

The solo 401k contribution limit for 2023 is $66,000. If you’re at least 50 years of age, you get an additional $7,500 in catch-up contributions, bringing your limit to $73,500.

You can contribute as both the employee and employer with a solo 401k:

  • Employee elective deferral: Can contribute up to 100% of compensation up to $20,500 ($27,000 if age 50+) in 2022 and $22,500 ($30,000 if age 50+) in 2023.

  • Employer nonelective contributions: Can contribute up to 25% of compensation if the business is incorporated, and 20% if the business is not incorporated.

Important notes

  • The total contributions (employee + employer) must not exceed the yearly solo 401k contribution limit.

  • Employee contributions can either be pre-tax (traditional) or post-tax (Roth).

  • Employer contributions can only be pre-tax (traditional).

  • Employer pre-tax contributions may be tax deductible on the business’ tax return, whereas employee pre-tax contributions may be tax deductible on the individual’s tax return.

  • If you have multiple businesses, or a day job, you can only contribute income from the business with the solo 401k.


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