[QUOTE=rp2pilot;2275180]Yes, I see that, and I also went back and looked at the MEC update from 12/16/16 and read the same. My point being, regardless of FICA tax, I believe only the portion of profit sharing that's below 18,000 / 24,000 has the ability to be shielded from FEDERAL INCOME tax. I already add $1000 / month to my 401k, so I "believe" that, in my circumstance, only $12,000 of the profit sharing can be treated exempt from FEDERAL income tax. Is this how you understand the tax ramifications?[/QUOTE








You will pay FICA and then held 25% for federal taxes even if you defer everything to your 401k.....

Best is either Roth the whole amount of PS to 401 or take the cash and contribute 100 of your income earned check for the month to 401 and take the tax defer IRS credit