Download your FREE Investor's Guide to Solo 401(k)s
With a self-directed 401(k) at New Direction IRA, your Solo 401(k) can invest in the full range of allowable assets:
- real estate
- precious metals
- private equity
- private loans
- ...and more.
Most people simply don’t know that these investments are allowable. Download our free guide and get the facts.Download Gude
401(k) Contribution Limits & Deadlines
Total employer contributions to a participant’s account, not counting catch-up contributions, cannot exceed $56,000 for 2019.
|Year ||Maximum Employee Contribution |
(if under age 50)
|Maximum Employee Contribution |
(if over age 50)
|Employee Contribution Deadline |
|2019 ||$19,000 ||$25,000 ||Deferred from last paycheck or Dec. 31, 2018 |
|2018 ||$18,500 ||$24,500 ||Deferred from last paycheck or Dec. 31, 2018 |
|Year ||Maximum Contribution |
(if under age 50)*
|Maximum Contribution |
(if over age 50)*
|Contribution Deadline |
|2019 ||$56,000 ||$62,000 ||04/15/2019 (plus extensions) |
|2018 ||$55,000 ||$61,000 ||04/15/2019 (plus extensions) |
The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities.The owner can contribute both:
Employer non-elective contributions up to:
- Elective deferrals up to 100% of compensation ("taxable compensation" in the case of a self-employed individual) up to the annual contribution limit:
2019: $19,000 or $25,000 if age 50 or over.
- 25% of compensation as defined by the plan, or for self-employed individuals, see discussion below.
- One can contribute to an IRA, move it into a 401(k) account, and contribute in-full to 401(k). However, not all of the contribution would be a deductible contribution.
- 401(k) employer may make an in-kind contribution to the plan. All other rules still apply - i.e., a disqualified persons may not be securing the loan.
- Employer matching or non-elective contributions are always made "pre-tax." Employers cannot make Roth contributions.