| Indiv 401k Contribution Tax Question |
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aonfear
New Member
Cash: $ 1.10
Posts: 5
Joined: 10 Aug 2009
Location: California
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| Indiv 401k Contribution Tax Question |
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Hi All,
I think this is correct Forum for this question which has me stumped.
I have gross revenue from my Solo S-Corp of $156k total this year
The Maximum Indiv 401k contrib I can make is $49k in 2009 which consists of $16.5k standard plus 32.5k [=Max 25% of Salary of 130k ]
If i pay myself 130k this year then my California and Fed Taxes will be very high and my Corp will make a net loss for the year [Which will pass through to me as it is an S-Corp]
From the limited research I've done , it always says i should max my 401k [which i can afford to do, by injecting a little capital in to my company to cover the delta between salary and expenses and income]
Am i right to do this ?,
Appreciate any insights you guys can give me,
Rgds,
N
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Fri Aug 28, 2009 5:11 pm |
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aonfear
New Member
Cash: $ 1.10
Posts: 5
Joined: 10 Aug 2009
Location: California
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Thanks coaster,
Its actually an Individual 401k [ Called solo 401k sometimes) which allows you to depoasit up to 25% of W2 Earnings plus 16.5k 401k Contribution up to max $49k per year.
I'm essentially just trying to evaluate whats most tax beneficial
Rgds,
N
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Sat Aug 29, 2009 5:30 pm |
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