ForumsSolo 401k ContributionsHow much W2 must show in order to contribute $20K to Roth solo 401K account?

Forums Solo 401k Solo 401k Contributions How much W2 must show in order to contribute $20K to Roth solo 401K account?

  • Top SubjectSolo 401k Contributions
    Top ForumsSolo 401k Contributions

    Patrick P
    Top SubjectSolo 401k Contributions

    November 30, 2022 at 8:06 am

    Hi,

    I have my Roth solo 401K account with my brokerage opened in 2020 with the help from mysolo401k.net. Based on the info from the page below. The max contribution for 2022 is $20K (I’m under 50 yo)

    https://www.mysolo401k.net/solo-401k/roth_solo_401k_contributions/

    I am self employed. How much do I have to pay myself on W2 to be able to contribute $20K to Roth solo 401K? Do we have a calculator somewhere? Please advise.

    Patrick P
  • Top SubjectSolo 401k Contributions
    Top ForumsSolo 401k Contributions

    Patrick P
    Top SubjectSolo 401k Contributions

    November 30, 2022 at 9:11 am

    Additional info. The business is taxed as a single member LLC S-corp.

    Patrick P
    • George Blower

      Top SubjectSolo 401k,Daily Live Webinar
      Top ForumsSolo 401k, Daily Live Webinar

      George Blower

      George Blower

      Top SubjectSolo 401k,Daily Live Webinar

      December 1, 2022 at 6:03 am

      Thanks for your good post!

      If a solo 401k owner has a plan like our plan that allows for Roth Solo 401k contributions, such person may make Roth Solo 401k contributions for 2022 equal to 100% of such person’s earned self-employment income not to exceed $20,500 (or $27,000 if 50 or older) provided that such person doesn’t make contributions to another plan such as a “day job” 401k plan.

      For a self-employed business taxed as an S-corp, self-employment compensation is equal to the w-2 wages received from the S-corp.

      Therefore, in order to make Roth Solo 401k contributions of $20,000 such person would need to receive at least $20,000 in w-2 wages from their self-employed business taxed as an S-corp.

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