
Harvard Law Attorney George Blower explains how to determine w-2 wages for a solopreneur taxed as an S-corp/C-corp for purposes of calculating your Solo 401k employer contribution limit.
The following income is not considered earned income from self-employment; therefore, it does not qualify for participating in a solo 401k plan or for making annual contributions to a solo 401k plan. Alimony Pay stemming from divorce Earnings and profits from property and investments, such as rental income, interest income, and dividend income Deferred compensation […]
If your self-employed business is an S-Corp or C-Corp that sponsors a solo 401k plan, and you elect to make after-tax contributions to the solo 401k plan, you may report these contribution on Form W-2 line 14. See below. IMPORTANT NOTE: Don’t confuse after-tax solo 401k contributions with Roth solo 401k contributions as they are […]