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I'm quite new to 401k and I have a small repair shop fixing computers. I haven't filed for 2017 taxes yet. I am a LLC where I file with my personal taxes.

If I pay taxes of $5000 this year, can I reduce that amount by putting money in my 401k? And what is the max amount? I already setup a Roth IRA and contributed $5500 already.

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Unfortunately you have to establish your 401(k) before December 31 of the year for which the contributions come. This goes for small business 401(k)'s as well as solo 401(k)'s.

However, you may be able to open and fund a SEP-IRA. The deadline for this is April 15, 2018. You will be able to contribute 25% of your 2017 profits to it.

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  • are you an accountant in nyc? – Patoshi パトシ Mar 28 '18 at 18:28
  • Sorry, I am not. – farnsy Mar 28 '18 at 22:24
  • @Patoshiパトシ farnsy might not be an accountant but what he says about needing to establish a 401k) before December 31 (and contributing to it by that date) is perfectly correct – Dilip Sarwate Mar 28 '18 at 23:35

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