Search results

@fbg The comparison of rates isn't right because you don't pay the taxes on the same amounts - but the comparison is the same regardless of whether it is a traditional or roth account.

@fbg Again, this isn't true for the OP who is making post-tax voluntary contributions.

@iamasinkingship Sorry to disappoint you, but it isn't me. I'm not web troll savvy enough to use multiple accounts and such.

@faithrose27 He is making after-tax voluntary employee contributions and rolling them into a Roth account - there are no employer contributions involved.

@kwintessenz I'm sure they do - whether it is truly expert financial advice is a whole other question

@joey13 The 8 week period begins on the date of first disbursement of funds: https://www.sba.com/funding-a-business/government-small-business-loans/ppp/faq/eight-week-forgiveness-period/

@joey13 As long as you aren't prepaying for work not yet done you should be fine.

@christinaw Whether the salary is suitable is a question for tax attorneys who are familiar with the case law - but that is wholly independent from the question of retirement plan contributions.

@atheistnomore39 I wouldn't, this is a financial planning question not an accounting one.

@613jono So the total of employee and employer contribution cannot exceed $57k. Also, the employer can only match a max of 25% of salary.

@613jono Which limit? This year the employee pre-tax contribution limit is $19,500 (if you are under 50), the total account contribution limit is $57k (if under 50). If you are making employer contribution that is limited by your compensation, as is your total employee contribution.

@skimmy The savings from a 401k and IRA contribution (roth or traditional) relative to a non-tax advantaged investment is equal to the savings in taxes.

@kwintessenz He said he was doing in plan rollovers to a Roth - if you are familiar with the context he is doing what is sometime called a 'mega backdoor Roth' where he is contributing after-tax to the 401K and rolling it over into a Roth. If you aren't familiar with the context then you may not...

@itjesus That isn't what you said in your post: " I provided 1099-MISC (gross) rather than Schedule C (net) because:... B: As an independent contractor, I pay for all of my own overhead. Gear, rent, etc, which significantly brings down my net income + taxes owed after calculating those...

@kellim He is making post-tax voluntary contributions and converting them to Roth. So we aren't talking about employer contributions which are limited to 25% of wages.

@lilbrenda There is no 'safe' ratio, it is case dependent and varies based on the nature of the business and your work for it. The IRS doesn't use a ratio to trigger an audit and leaning back on a ratio won't be an adequate defense if you happen to be challenged.

@itjesus They told sole proprietors to hold off, when they opened it up to them they released the guidance that spelled out what net earning were. Yeah, they were building the ship while sailing it and that wasn't pretty - but you clearly know what the rules are now, you said you didn't...

@kwintessenz No, you are limited by your earnings minus payroll taxes (you can only contribute income and payroll taxes are taken out before 401k contributions). So he'd have to pay himself a little bit more than 57k and can then contribute it all to a 401k as 'voluntary' contributions as long...

@itjesus "I ’m afraid that when I file my taxes there will be major issues and as tempted to just send back the $$.. anyone else in a similar boat? " You will have major issues if you don't return the excess amount. You acknowledge that you inflated your net earnings to get a larger loan - that...

@kwintessenz Sure, this description is as good as any: https://www.fidelity.com/viewpoints/retirement/401k-contributions