To fill the gap, I'll probably contribute the balance to my personally owned company's individual 401k plan.
This has several advantages and disadvantages:
- I may have to pay payroll tax on the salary deferal to my individual 401k - estimate about $1,200 - money that I wouldn't have to pay (or at least as much) through my employer's plan.
- I have to move money around to be able to do it.
- Yet another end of year financial activity competing with holiday time, etc....
- I'll have $8k or so not participating in the ridiculous retirement plan available at Big Company.
- The $8k will have a very large variety of investments available - especially low cost index funds.
- I'll have better financial reporting for the money invested outside of my company plan - including better integration with Quicken.
Anyone have any idea if a small C corp needs to make payroll tax contributions if 100% of the salary earned by the employer is deferred into an individual 401k?