2012 Solo 401k Contribution Limits:
The maximum an individual can contribute to a 401(k) retirement plan for 2012 is $17,000, which is up from $16,500 in 2011. This new contribution limit applies to all 401(k) type retirement plans, including 403(b) plans and 457 plans.
Under 50 years of age at the end of 2012 – Up to $49,500. This is broken up into $17,000 salary deferral and the remainder profit sharing contribution. (Up to 20% of net adjusted business profit.)
50 years of age or older at the end of 2012 – Up to $54,500. This is broken up into $17,000 salary deferral plus $5,500 a year as a catch up. The remainder is a profit sharing contribution. (Up to 20% of net adjusted business profit.)
All contributions must run through your IRA Custodian.
2011 Combined Traditional and Roth IRA Contribution Limits:
The 2011 IRA contribution limits are the maximum amounts you can save for retirement using an Individual Retirement Account (IRA) or a Roth IRA. Although you can contribute to both, your combined annual contributions cannot exceed the amounts below.
Under 50 years of age at the end of 2011 – Up to $5,000 if you and your spouse have earned income greater than the amount you contribute.
50 years of age or older at the end of 2011 – Up to $6,000 if you and your spouse have earned income greater than the amount you contribute.
There is no maximum income restriction for IRA contributions, but there are income limits to deducting regular IRA contributions based on marital status and income etc. You should check with your Tax Professional for your personal limits.
All contributions must run through your IRA Custodian.
2011 Solo 401k Contribution Limits:
The Solo 401k contributions are flexible and have a salary deferral and profit sharing contribution limit, depending on business profitability.
Under 50 years of age at the end of 2011 – Up to $49,000. This is broken up into $16,500 salary deferral and the remainder profit sharing contribution. (Up to 20% of net adjusted business profit.)
50 years of age or older at the end of 2011 – Up to $54,000. This is broken up into $16,500 salary deferral plus $5,500 a year as a catch up. The remainder is a profit sharing contribution. (Up to 20% of net adjusted business profit.)
If the business owner and spouse have sufficient income from the business, both may contribute $49,000 each or $54,500 each if both are age 50+ in 2011.
All contributions must run through your IRA Custodian.
