ForumsSolo 401k – Eligibilitysolo 401k account opening questions

Forums Solo 401k Solo 401k – Eligibility solo 401k account opening questions

  • solo 401k account opening questions

    4 Replies
  • Top SubjectSolo 401k – Eligibility,Solo 401k
    Top ForumsSolo 401k – Eligibility, Solo 401k

    Lilly Z.
    Top SubjectSolo 401k – Eligibility,Solo 401k

    May 8, 2022 at 9:24 pm

    I just opened my S-Corp recently. It is chaos for me to understanding lots of new concepts related with S-Corp. In last month, my CPA told me since I can’t tell how much I can get for my company in the year, he can’t do payroll for me. So he said he will issue me 1099-NEC to me as a employee. Now, my question is,

    if I am as the only employee of my S-Corp with 1099-NEC, Could I still contribute $20500 to the solo 401k, and my S-Corp still can contribute 25% of my 1099-NEC income? Or I have to be w-2 employee?

    Thanks.

    Lilly Z.
  • Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions
    Top ForumsSolo 401k, Solo 401k Contributions

    Mark Nolan

    Mark Nolan

    Top SubjectSolo 401k,Solo 401k Contributions

    May 9, 2022 at 12:10 pm

    Who will be the PAYER on Form 1099-NEC? Please ask your CPA if you do not know.

    • Top SubjectSolo 401k – Eligibility,Solo 401k
      Top ForumsSolo 401k – Eligibility, Solo 401k

      Lilly Z.
      Top SubjectSolo 401k – Eligibility,Solo 401k

      May 12, 2022 at 7:21 pm

      I think it is my company. I own 100% of the company, and I am the only employee of the company. Why do you ask this?

      I have another question. I am trying to open an account, but I saw that I will get another EIN for my solo 401k. But why should I get a new EIN for my solo 401k? Couldn’t I use my company’s EIN for the solo 401k account?

      Thanks.

      Lilly Z.
      • Mark Nolan

        Top SubjectSolo 401k,Solo 401k Contributions
        Top ForumsSolo 401k, Solo 401k Contributions

        Mark Nolan

        Mark Nolan

        Top SubjectSolo 401k,Solo 401k Contributions

        May 15, 2022 at 1:28 pm

        If the 1099-NEC is issued in the name of S-corp, then the solo 401k contributions will based on line 31 of the Schedule C, resulting in having to subtract 1/2 of self-employment income tax from the amount that will be used to calculate your solo 401k contributions. Therefore, you may want to consider discussing with your CPA in reporting W-2 wages as the 1/2 of self-employment income reduction does not impact the solo 401k contribution calculation when it is based on W-2 wages generated from one’s self-employed business.

  • Top SubjectSolo 401k – Eligibility
    Top ForumsSolo 401k – Eligibility

    Mike Stanley
    Top SubjectSolo 401k – Eligibility

    July 18, 2022 at 6:53 am

    Hi guys! Newbie here, thanks for accepting me.
    interesting discussion and most importantly useful for me

    Mike Stanley

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