Taxability of "elective deferrals" that my client makes to the solo 401k plan

BACKGROUND: My specific question is related to the taxability of "elective deferrals"
that my client makes to the solo 401k plan that your company has set-up.

QUESTION: Is this similar to a regular 401k account that his "elective deferrals" ARE
subject to social security and medicare taxes, but not regular federal
income tax?  

Or is this a 401k hybrid that has absolutely NO tax implications until
distributions are taken?

ANSWER: Because the solo 401k plan sponsoring company is a corporation, both contribution types (salary deferral and profit sharing) will be based solely on W-2 income.  Further, the earnings generated within the solo 401k will grow tax-deferred and not taxed until distributions commence, usually at retirement.  Please visit our on-line solo 401k contribution calculator to calculate the annual solo 401k contribution amount.

Thanks,

Pat H.
Public Accountant
Fort Lauderdale, FL