Individual 401(k) Hello,
I work as a tutor and am considered an independent contractor (1099-MISC).
I would like to open an individual Roth 401(k) at one of the mutual fund companies. As I understand it, contributions can be made to the plan in both the employee and employer capacities subject to the following limits:
Employee: $17,500 or 100% of compensation
Employer: 25% of earned income
I know that my employee Roth contributions are not deductible (just as Roth IRA contributions would not be deductible). However, are the employer Roth contributions treated as a business expense? That is, could I deduct the employer part of my contributions on Schedule C (even though it's a solo Roth 401k)? And in general, are there any tax differences between making employer vs. employee contributions to an individual Roth 401(k)?
Thank you! |