Please consider an individual, in the US, who has net earnings from self employment of $8000 who wishes to contribute to an Roth 401(k) plan. For tax purposes these earnings can be reduced by 20% due to the new tax law.

How much money can be put into his Roth 401(k) plan? Under the old rules it would be $8000 but now, I am wondering if it is $8000 or $6400?

Thanks,
Bob

  • 2
    If this person is self-employed, how do they have a Roth 401k, which is an employer-sponsored plan? – mattm Aug 9 at 22:04
  • There are brokerage firms that will enable a self employed person have a Roth 401(k). I have mine through E*Trade. – Bob Aug 9 at 22:23
  • Why not ask the administrator of your Solo 401(k) plan? The answer depends on your specific plan. – Dilip Sarwate Aug 10 at 6:32
  • I did. They said they did not know. – Bob Aug 10 at 18:34

Roth 401(k) plan contribution comes after tax deduction of the particular employee.The limit for employee contribution is $18,500 per year for age under 50 years and $24,500 per year for age 50 years and above.This limit can be combination of total of Traditional 401(k) and Roth 401(k).Maximum Total contribution from employee and employer must be less than 100% of employees salary or $55,000 for age under 50 and $66,000 for age 50 and above.Based on these rules you can contribute to Roth 401(k) plan.

  • I agree that this person can put money into his Roth 401(K). The question is, how much? – Bob Aug 10 at 22:19

Your Answer

 
discard

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Not the answer you're looking for? Browse other questions tagged or ask your own question.