I have an employer sponsored 401K plan where my employer matches up to a certain limit. I max out at 19.5K and my employer pays about 7.5K which works out to be 27K total.
Now I also perform independent consulting and make about 30K per year. All this income is reported in a 1099-NEC (used to be 1099-MISC) form.
Now I am planning to open a separate solo 401K to put some money from this venture. Based on my research I can put another 19.5K + 25% of my adjusted earned income (say that works out be 20% which is 6K) = 25.5K
My question is as long as the 27K + 25.5K = 52.5K total remains under the 58K total 401k contribution limit, I am good to go correct? Are there other thing for me to keep in mind when I try to max out my solo 401k.
Another question I had is do the calculations change if I go for a Roth 401k or is it the same except of course I will still pay taxes on the 25.5K.
Thanks for any responses in advance.