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Solo 401k Calculator

How much can I contribute into a Solo 401k, SEP IRA, Defined Benefit Plan or SIMPLE IRA?

Using the retirement calculator you can calculate the maximum annual retirement contribution limit based on your income. Enter your name, age and income and then click "Calculate."

The result will show a comparison of how much could be contributed into a Solo 401k, SEP IRA, Defined Benefit Plan or SIMPLE IRA based on your income and age.

Note: If you are taxed as a sole proprietorship use your NET income when using the calculator. If you are incorporated, then only use your W-2 wages when using the calculator. For example, S corporation K-1 distributions (corporate profits) are not included when making the contribution limit calculation.

Name
Yearly Income
Age        Plan Year 
Choose Your
Business Type
Sole proprietorship, partnership (or LLC taxed as a sole proprietorship)
S corporation, C corporation (or LLC taxed as a corporation)
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After utilizing the retirement calculator, you can read in-depth information about each of these retirement plans at the links below.

How are the Solo 401k contribution limits calculated?

The 2014 Solo 401k contribution limits are $52,000 and $57,500 if age 50 or older (2013 limits are $51,000 and $56,500 if age 50 or older). The annual Solo 401k contribution consists of 2 parts a salary deferral contribution and a profit sharing contribution. The total allowable contribution adds these 2 parts together to get to the maximum Solo 401k contribution limit.

Solo 401k contribution calculation for a sole proprietorship, partnership or an LLC taxed as a sole proprietorship.

  • Salary Deferral Contribution
    Although the term salary deferral is used, these businesses do not provide a W-2 salary to the business owner. For businesses of this type, the salary deferral contribution is based on net adjusted business profit. Net adjusted business profit is calculated by taking gross self employment income and then subtracting business expenses and then subtracting 1/2 of the self employment tax. In 2014, 100% of net adjusted business profits income up to the maximum of $17,500 or $23,000 if age 50 or older can be contributed in salary deferrals into a Solo 401k (2013 limits are $17,500 or $23,000 if age 50 or older).
  • Profit Sharing Contribution
    A profit sharing contribution can be made up to 20% of net adjusted businesses profits. Net adjusted business profit is calculated by taking gross self employment income and then subtracting business expenses and then subtracting 1/2 of the self employment tax. You will want to ask your tax professional for assistance with this calculation.

Learn more about the Solo 401k Contribution Limits for a sole proprietorship, partnership or an LLC taxed as a sole proprietorship.

Solo 401k contribution calculation for an S or C corporation or an LLC taxed as a corporation

  • Salary Deferral Contribution
    In 2014,100% of W-2 earnings up to the maximum of $17,500 or $23,000 if age 50 or older can be contributed to a Solo 401k (2013 limits are $17,500 or $23,000 if age 50 or older).
  • Profit Sharing Contribution
    A profit sharing contribution up to 25% of W-2 earnings can be contributed into a Solo 401k.

Learn more about the Solo 401k Contribution Limits for a for an S or C corporation or an LLC taxed as a corporation.

Learn more about the benefits of the Solo 401k

  • Solo 401k - Information, Rules and Frequently Asked Questions about the Solo 401k.
  • Solo 401k Loans - A 401k loan up 50% of the total value of the 401k up to a maximum loan of $50,000 is permitted with a Solo 401k plan.
  • Solo 401k Rollover - You can rollover your 401k, 403b, 457, TSP and Defined Benefit Plan from a previous employer. You can also rollover a Traditional IRA, SEP IRA, Rollover IRA, SIMPLE IRA and Keogh plan.
  • Solo 401k Eligibility - Learn about the eligibility rules and find out who is eligible and who is ineligible to establish a Solo 401k plan.
  • Solo Roth 401k - There is an option to make Roth 401k contributions with the salary deferral portion of the Solo 401k. Contributions into a Roth 401k are not tax deductible, but withdrawals are tax free after age 59 ½.
  • Solo 401k Providers - Learn about the 3 main types of Solo 401k providers and the investment options available with each Solo 401k provider.
  • Self Employed Retirement Plan Comparison - Compare the Solo 401k, SEP IRA, Defined Benefit Plan and Simple IRA.

 

How Can BCM Help You?

Beacon Capital Management Advisors (BCM) is experienced in setting up retirement plans for our clients. BCM provides retirement plans to the self employed, freelancers, entrepreneurs, independent contractors and small business owners and is registered in 50 States. Complete the form below and a BCM Advisor will promptly respond to your inquiry.

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Disclosures:

*The information on this page is for informational purposes only and does not constitute, and should not be construed as, professional, legal or tax advice. To determine your individual tax situation and specific needs, please consult a professional tax advisor.

*Information contained in these sections merely highlight some benefits. There are risks involved with all investments that could include tax penalties and risk/loss of principal.