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"A business profit and earned income are 2 different things. I have an LLC that on paper shows a loss because of depreciation. However, I could pay myself enough income to contribute to a 401k."

My business is merely a sole proprietorship.

Ditto, sole proprietor LLC. So depending on your business situation, you could still fund a 401k. For me, it comes down to a "paper loss" due to depreciation. If you don't have that ability, then you probably don't have the money to contribute. Talk to a CPA.

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