Author Topic: Check 401k math please - W2 employment and small business  (Read 216 times)

MidWestLove

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Check 401k math please - W2 employment and small business
« on: May 13, 2018, 05:10:09 PM »
Could you please check my math /confirm understanding?

- small business, my net income so far is 55k . my business has adopted 401k plan which includes after tax contribution provision
- about to start W2 employment , with 401k plan available and small match.

is below a correct way to think about it
- 18.5 limit is per person per year (regardless of the number of employers)
- 55k limit is per employee

so
W2  - 18.5k contribution at the new place
business - 10k profit sharing, the remaining amount (55-10 - SE tax, could go as after tax into small business plan)

 ?

I am not accounting for employer match at W2 place as I do not think it reduces 55k space , is this correct?
Thank you