Personal Finance (Not Investing) • Should I Open a Solo 401(k)?

While you will lose out on QBI, I am fairly certain you don’t pay FICA on the employer contributions.

This may be true for an S-corp (I think it probably is, but don't have personal experience), but if so that's just because you already don't pay FICA on profits since that's most of the point of electing to be taxed as an S-corp. For anyone else reading this, it's not true for a sole proprietor: you still pay FICA on all net earnings (within the social security income limits) regardless of solo 401(k) contributions.

Statistics: Posted by terran — Sat Dec 14, 2024 8:42 am — Replies 5 — Views 332

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