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Financial Planning / Tax Strategies


Subject:  Re: Solo 401K Date:  10/22/2013  11:26 AM
Author:  Wradical Number:  119380 of 127753

So, sole proprietor set up a Solo 401K and is making employer and employee contributions to the plan. Contributions are reported on his 1040 on line 28. So far so good. Is this both the contributions as employer and employee? I think so, but haven't been able to confirm.
I've always assumed so, without thinking about it too deeply. I don't think you can deduct the "employee deferral" portion on Schedule C without messing up the SE Tax calculation. And 401K contributions are included in FICA wages or SE taxable income. So page 1 is the best place to deduct the whole contribution amount.

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