What is the maximum I can contribute as an employee each year?
For 2004: A: Employees under 50 can contribute up to 100% of their earnings (not to exceed $13,000) as an employee contribution to their Solo 401k plan. (Employees who are older than 50 (or who turn 50 in 2004) can contribute up to 100% of their earnings not to exceed $16,000) as an employee contribution to their 401k plan. For 2005: A: Employees under 50 can contribute up to 100% of their earnings (not to exceed $14,000) as an employee contribution to their Solo 401k plan. (Employees who are older than 50 (or who turn 50 in 2004) can contribute up to 100% of their earnings not to exceed $18,000) as an employee contribution to their 401k plan.
For 2007: A: Employees under 50 can contribute up to 100% of their earnings (not to exceed $15,500) as an ROTH employee contribution to their Solo 401k plan. (Employees who are older than 50 (or who turn 50 in the relevant tax year) can contribute up to 100% of their earnings not to exceed $20,500) as an ROTH employee contribution to their 401k plan. Only if you have established a separate designated “ROTH 401k” account you may divide the total employee contribution (plus the “catch up”) between the ROTH 401k account and the traditional pre-tax 401k account in any percentage you choose. You may take a tax deduction for the amounts contributed to the traditional pre-tax 401k account but you may not take a tax deduction for the amounts contributed to the ROTH 401k account. You may not exceed the total of $15,500 ($20,500 if age 50 or older) between both the traditional pre-tax 401k account and the ROTH 401k account. You may not make an employer contribution or employer profit sharing or
