The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: 401K for small business||Date: 7/31/2013 9:38 PM|
|Author: aj485||Number: 118956 of 125869|
Looking at the Fidelity site, it indicates that with a self-employed 401k that one can fund 17,500/23,000. However, it also states that one can also do a profit sharing contribution of up to $51,000.
No. You missed the part in bold below from the '2013 employer contribution limits' row:
Employers may contribute up to 25% of compensation3 up to a maximum of $51,000.
Total employer/employee contributions cannot exceed $51,000.
Any non-catch-up salary deferral made by the employee (up to the $17,500 limit) is subtracted from the amount that the employer can contribute.
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