I have a W2 job where I max my FICA and my 401k (23k employEE). I also have a 1099 side gig so I opened up a non-prototype solo 401k to allow after-tax->roth. So if I made 200k after deductions in 2024 are these calculations correct?
Net Income 200k
1/2 SE Tax = $13,131 (200k * 92.35% * 2.9% * 0.5) + (168,600 * 12.4% * 0.5)
$200,000 - $13,131 = $186,869
1099 business employER contribution
Pretax = 20% of $186,869 = $37,374
Aftertax/Roth = 69,000 - $37,374 = $31,626
Can someone confirm Im thinking about this correctly? I want to understand rather than just have a CPA give me a number. Thank you!
Net Income 200k
1/2 SE Tax = $13,131 (200k * 92.35% * 2.9% * 0.5) + (168,600 * 12.4% * 0.5)
$200,000 - $13,131 = $186,869
1099 business employER contribution
Pretax = 20% of $186,869 = $37,374
Aftertax/Roth = 69,000 - $37,374 = $31,626
Can someone confirm Im thinking about this correctly? I want to understand rather than just have a CPA give me a number. Thank you!
Statistics: Posted by Osme02 — Tue Feb 06, 2024 8:25 pm — Replies 2 — Views 205