Background:
LLC pass through 1099 income file Schedule C
Has solo 401k plan
Has LTRs
發現一個新的省稅的方法， 12月份2023 官方才明確下來具體操作方法。
Solo401k Overall limit on contributions $69,000 ($76,500 including catch-up contributions) for 2023.
現在法律有史以來第一次通過allow Roth solo 401k employer profit sharing contributions (aka nonelective) under SECURE 2.0
舉例，2023年 Schedule C 淨收入10萬，今年沒有存其他退休金，Roth solo 401k employer profit sharing contribution $69，000; I will issue 1099 R with $ 69,000 income (this is not subject to FICA for my schedule C income) for 2024; 這樣省了一萬左右的FICA for 2023; 2024 年 I am eligible for REPs; will do cost seg to generate rental loss and planning to off set 200k active income for 2024.
I know if for Employer pre tax profit sharing; I can only contribute $100,000* 20% as a sole propritor; I understand in this case, the Roth solo 401k employer profit sharing contributions can be up to $ 69000, I am still waiting for fianal confirmation.
