Self employed 401k for resellers

[superdrew]

I've built quite a nice reselling business to the point I now need to legally shelter as much income as possible from the tax man.

Any recommendations for a small business 401k? I'm an LLC and about to make an SCorp designation. I have one part time high school student, my wife and myself. I had read that employee contribution Max is 18k and total employee and employee Max is 53k but it depends on highly compensated employee (which the two of us will be, but also the only full time employees). We also have a contractor that sources full time for us, but he's not an employee.

 

[Matt]

Here is a starter- https://saverocity.com/forum/threads/retirement-plans-for-resellers.515084/

The ee er max and highly comped employee isn't correct- have a read and line me up some questions.

 

[linda nguyen]

Looking at a After Tax Contribution plan for a solo 401k is also a good idea. This usually comes into play when someone is trying to maximize money to put into retirement investing.

For example lets say an owner of a S Corp makes $80,000. He puts $18,000 into the 401k, $20,000 into the profit sharing plan. This is usually where most people will stop.

Adding a After Tax Contribution plan can let a person contribute an additional $15,000 into the plan and then convert it to a ROTH. See the article for more details:

https://www.kitces.com/blog/irs-notice-2014-54-acquiesces-on-splitting-after-tax-401k-contributions-for-roth-conversion/