For my S corporation, I am taking a salary of $100,000. I have a solo 401(k). What is the limit on my employer deductible 401(k) contributions? Is it 25% of my W-2 salary or 25% of the S corp's total income i.e salary + distribution?

ANSWER

The BIDaWIZ Team's Answer:

You can contribute up to $17,500 or $23,000 if older than 50 in salary deferrals plus 25% of W-2 wages as part of the profit sharing contribution. In your case you would contribute up 25% of $100,000 or $25,000 plus $17,500 or $23,000 if you're older than 50. This equates to a total of $42,500 or $48,000.