QUESTION:
If I contribute to my full-time employer (day job) 401k plan, will the amount contributed reduce the amount that I can contribute to my after-tax solo 401k plan?
ASNWER:
- The voluntary after-tax contribution limit is 100% of your self-employment compensation not to exceed the overall limit (IRC Section 415(c)) which is $61,000 for 2022 REDUCED BY any salary deferrals or profit sharing contributions made to the Solo 401k. For 2023, the overall solo 401k contribution limit increased to $66,000.
- The 415c limit is applied on a per employer basis (assuming that the employers are not related).
- This means that the fact that you made employee contributions (salary deferrals) to a 401k plan sponsored by an unrelated employer (via a day job) you can still make for 2022 voluntary after-tax contributions up $61,000 to the Solo 401k (assuming that you have the self-employment income to justify such contributions). This solo 401k contribution limit is $66,000 for 2023.
