Besides making elective deferral contributions--$17,000 for 2012 also commonly referred to as employee contributions--after you open solo 401k; in addition to profit sharing contributions--25% of net income for 2012 also known as employer contributions--Solo 401k allows for Catch-up contribution, provided the following conditions are satisfied.
Solo 401k Catch-up contributions
All 401ks including solo 401k allow for those age 50 or over by the end of the calendar year to make catch-up contributions on top of employee and employer contributions discussed above. For tax/plan year 2012, the catch-up contribution limit is $5,500, which can be applied as a Roth Solo 401k contribution or regular (pretax) contribution. Further, since catch-up contributions are a sub category of elective deferrals, they are added to the annual deferral limit which is $17,000 for 2012, thus resulting in a total salary deferral of $22,500 for 2012 when including the catch-up amount. By the way, this entire amount can be treated as a Roth Solo 401k contribution.
Solo 401k Catch-up contributions
All 401ks including solo 401k allow for those age 50 or over by the end of the calendar year to make catch-up contributions on top of employee and employer contributions discussed above. For tax/plan year 2012, the catch-up contribution limit is $5,500, which can be applied as a Roth Solo 401k contribution or regular (pretax) contribution. Further, since catch-up contributions are a sub category of elective deferrals, they are added to the annual deferral limit which is $17,000 for 2012, thus resulting in a total salary deferral of $22,500 for 2012 when including the catch-up amount. By the way, this entire amount can be treated as a Roth Solo 401k contribution.
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