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Are Solo 401k contributions 100% tax deductible?

April 26, 2017contributions deductible tax

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Are Solo 401k contributions 100% tax deductible?

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Yes, salary deferral and profit sharing contributions are generally 100% tax deductible. Subchapter S and C corporations or LLCs electing to be taxed as a corporation can generally deduct the salary deferral contribution from personal W-2 earnings and the profit sharing contribution as a business expense. A sole proprietorship, partnership or a LLC taxed as a sole proprietorship can generally deduct salary deferral and profit sharing contributions from personal income.