The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/looking-at-the-fidelity-site-it-indicates-that-30804801.aspx

Subject:  Re: 401K for small business Date:  7/31/2013  9:38 PM
Author:  aj485 Number:  118956 of 121572

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.

AJ
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us