401K Calculators is nothing but a calculation used to determine the ability of an individual or employer/company with regards to his/its contributions towards 401k plan. For this purpose participants have been divided in three different categories.

• Sole proprietorship: One must furnish the following information for determining maximum amount he can contribute towards 401k plan as a sole proprietor

1. Name of the owner
2. Estimated net profit during the year
3. Date of birth of business owner (for example if the you are calculating for the year 2006 mention whether you were born before Dec 31, 1956).

• Partnership: Following information is required to determine the maximum contribution of each partner towards 401k plan.

1. Names of partners
2. Estimated net profit during the year
   In above cases it is assumed that the individual (sole proprietor/partner) has no other source of income.

• Corporation: A business owner must furnish the following information to determine his maximum individual 401k contributions for that particular year in comparison to other retirement plans

1. Name of the owner

2. Estimated wages for that year (W-2 wages)

3. Whether the owner was born in or before 1956.
   

    

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Category: 401k Calculators

Tags: , 401k Calculators, 401k plan.