Solo 401(k) and Massachusetts income tax?


Rich Carreiro

Anyone know if any part of a "solo" 401(k) contribution made
by a sole proprietor can be deducted on a MA individual
income tax return?

I haven't been able to find any place for it, or any
indication that any deduction is allowed. And since it is
clear that MA does not allow deductions for traditional IRA
contributions, SEP-IRA contributions, and Keogh plan
contributions, I would not be surprised to find out that the
"profit-sharing" part of a solo 401(k) contribution would
not be deductible.

However, MA does allow *employees* to deduct their
salary-deferral contributions to a 401(k) [by virtue of MA
using the W-2 Box 1 number for wages], so it wouldn't be
intrinsically unreasonable to expect that sole proprietors
might be able to take a deduction for the "salary-deferral"
part of a solo 401(k) contribution.

So is there some non-obvious way to get a full or partial
deduction, or are MA sole proprietors just out of luck?
Last edited by a moderator:


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question