Can profit sharing contributions be made to my Solo 401k throughout the year?
Can profit sharing contributions to my Solo 401k be made throughout the year, or do I have to wait until the end of the year to make them?
Answer:
Profit sharing contributions can be made throughout the year. However, note that the profit sharing contributions are limited to a percentage of your compensation (25% for corporations, 20% for single member LLCs or sole proprietors) at the time you are making them.
For example, if your compensation (i.e. the wages you take from the company) up to date are $16,000, your corporation can put up to $4,000 in profit sharing contributions.