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URL: http://boards.fool.com/just-to-clarify-on-the-single-k-contribution-18780953.aspx
Subject: Re: Solo-K + (Roth/Traditional) IRA?	Date: 3/21/2003 9:51 PM
Author: W401K	Number: 35950 of 72263
Just to clarify on the Single K contribution limits. In general it is 40k 42k if over 50, but here is the breakdown: 12k "Employee" salary Deferral 25% of pay as an "employer" contribution both amounts cannot exceed 40k. However since you are schedule C it gets a little weird. It is 25% of reported net minus 1/2 the self employment tax. this usually works out to around 20%. If you are a Sub S corp or a C corp, then you can do the full 25%. The $40k limit still applies. The 2k Catch up is only if you are turning 50 this calendar year or are already over 50. Bill
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