I'm self-employed and currently max out my SEP-IRA. However, I'm going to open a solo 401k for 2018 so that I can contribute significantly more. Both are opened for the same schedule c business with no employees other than myself. Will I be able to contribute to both of them in the following situation?
Net self-employment income = $60,000
Adjusted net self-employment income =$55,761
SEP IRA Employer Contribution = $11,152 (20% of above)
Solo 401k Elective Deferral (employee contribution) = $18,500 (max allowed)
Solo 401k Profit-Sharing (employer contribution) = $11,152 (20% of above)
Basically, can I contribute $40,804 (since it is below the $55,000 limit) for 2018 or am I only allowed to contribute $29,652?