Self-Directed Solo 401k contribution question

After I open Solo 401k plan, I plan to roll over an IRA into this Self-Directed Solo 401k . The amount is $95K.

I noticed I can put in $50K + $5,500 since I am over 50 for 2012.  So, do I roll over $55,500 to my Solo 401k and wait till January 2013 to transfer the rest?

What is the $50K based on? My self-employment income in 2012 will be less than $20K.  Does that impact the $49K or can I still contribute the maximum since I am rolling it over my Solo 401k?

I need to be able to put in the maximum amounts.  Please let me know.

Thanks,

Yanni

Answer: Rollover/transfers are not subject to the annual Solo 401k contribution limits.  In other words, the Sol 401k rules permit unlimited transfer/rollover amounts from IRAS, except for Roth IRAs, which the rules do not allow to transfer/rollover to Solo 401k.

Answer: The annual Solo 401k maximum contribution of $50,000 for tax year 2012 is based on net self-employment income minus 1/ 2 of self-employment tax. Therefore, if your net self-employment income for 2012 is $20,000, to calculate your maximum tax-deductible contribution you would first subtract ½ of self-employment tax; then contribute the remaining amount as a tax deductible contribution since it would be well below the $50,000 plus $5,500 catch-up limit for those age 50 or older. Please use our online contribution calculator to calculate your tax-deductible contribution.  To calculate your Solo 401k contribution, please visit Solo 401k contribution calculator.