Solo 401 K, Sole Proprietor, Schedule C question

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flaresident
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Joined: Mon Jun 25, 2018 12:43 pm

Solo 401 K, Sole Proprietor, Schedule C question

Post by flaresident » Tue Jul 03, 2018 11:55 pm

As a Schedule C sole proprietor, I am interested in maximizing post-tax dollars in a Solo 401k, i.e., I'd like to make an $18,500 employee deferral and a $36,500 post-tax contribution (no tax-deferred employer contributions). Can anyone direct me to IRS clarification that in calculating net compensation in this circumstance I reduce my Schedule C net income by 1/2 of the self-employment tax for purposes of the 100% cap? I can see how it could otherwise be a "double-dipping" of sorts if I were making a tax-deductible contribution, but I am trying to confirm that this is required when you are not making any tax-deductible contributions. Thank you for any insight!

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