Wednesday, November 28, 2012

Another S-Corporation Contribution to Solo 401k Question




QUESTION: If I start to pay myself salary compensation and elect to be taxed as an
S-Corporation but still operate as an LLC, how does it affect the calculation of my contribution to the self-directed Solo 401k?

E.g total salary is $70K, net income is $30K after all expenses including salary.

Thanks.
J
 ANSWER:  Good question. Contributions to Solo 401k based on S-Corporation status are based on W-2 wages. Interesting that you pose this question because we responded to a client inquiry regarding this yesterday and posted the following blog which can be viewed by clicking on following link:

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