Reasonable Salary
“I want to maximize my solo 401k profit-sharing contribution, do I need to artificially increase my W-2 salary to do this legally?”
For a solo 401k, the interaction between W-2 compensation and profit-sharing is often central, and the answer typically depends on how the business is structured, the level of earned compensation, and whether the salary is viewed as reasonable for the work performed. In many cases, the IRS focuses on whether W-2 pay matches the services and role, rather than on a target contribution goal alone. Other factors can include entity type, payroll history, and how the plan is administered, since those details can affect what is supportable if reviewed. Going through your records with a CPA usually surfaces the answer in under an hour.
In your 60-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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