Last Updated 5/21/2025
QUESTION:
For 2025, I am a W-2 employee at Eastern Airlines and I contribute to that employers 401k plan. Can I also make the full voluntary after-tax contribution of $70,000 for 2025 to my solo 401k plan based on my earned income from my self-employed business?
ANSWER:
Correct – you can contribute voluntary after-tax contributions to the solo 401k plan without regard to contributions made to a w-2 employer sponsored plan (a day time employer). See more below:
- 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 $70,000 for 2025 REDUCED BY any salary deferrals or profit sharing contributions made to the Solo 401k.
- 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 voluntary after–tax contributions for 2025 of up to $70K to the Solo 401k (assuming that you have the self-employment income to justify such contributions).
