If I contribute to a solo 401k, is the additional profit-sharing contribution (the 25% of compensation after the $19500 contribution) based on my gross income, or is it based on gross income minus expenses? Thank you🙏🏼

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Posting as :
works at
You are currently posting as works at

It’s based on your salary. Do you have an LLC with an S-Corp election?

If so, then it’s 25% of the salary that you are paying yourself.

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Ok thanks. I have an LLC. Dont have an S crop election

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