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
