Solo 401k Contribution Limit

http://www.sensefinancial.com

One of the biggest advantages of a Solo 401k is its generous contribution limits, which allow account holders to put away nearly 10 times more than an IRA.

To learn more please visit our website or contact (949) 228-9394.


With a Solo401k, the plan participant is considered both the employer and the employee of the business. Therefore, he will be allowed to make both salary deferrals and profit sharing contributions. In 2015, the salary deferral contribution limited to $18,000 per year. Plan participants over the age of 50-years old can also make a catch-up contribution of $6,000. The profit-sharing contribution is as much as 25% of the owner’s compensation (20% for single member LLC’s and sole-proprietorship). The total contribution limit before catch-up contribution is $53,000 for 2015.