Single member LLC, trying to enter Solo 401-k contributions. My calculated max is $34k but I want to contribute 24k. Where do I enter the employee part /employer?

[carolinap78]

My 'retirement Deduction results' show
'Self-employed Individual 401(K)' as 18k and 401k matching contributions as $5k. Did I do this correctly or does the matching contributions refer to a different type of plan all together? Thank you!

[dmertz]

I infer from your question that you are intending on contributing less than the maximum permissible for your  age and net profit.  The results seem to suggest that you entered only $5,000 as your employer match/profit sharing contribution rather than $6,000, the amount necessary to make a total contribution of $24k.

Is $34k the amount that TurboTax indicates is your maximum contribution when you mark the Maximize box for an Individual 401(k)?
What amount is appearing on Form 1040 line 28?
Were you under age 50 at the end of 2017?

[carolinap78]

Thanks for your reply and apologies for the confusion- I'm using the online program so I can not actually see what line I'm entering things on (?) but yes, the program says I can do a total of 34k - however I can only do max 24. I'm just not sure where in the program I should enter these numbers. Should it just all be 24k in one place and assuming the program knows that 18k is my personal max so to speak, or do I split it up to $18k + $6k and enter the 6k in the employer matching? Since I'm a SMLLC I'm not sure it counts as the employer. Hope this adds clarity and thankful for any feedback.

[carolinap78]

I'm under 50, yes

[dmertz]

Since you are under age 50, your maximum elective deferral is $18k.  For a contribution totaling 24k you would enter $18k as your elective deferral and $6k as your employer match/profit sharing contribution.  These entries are to be entered separately in the corresponding boxes on the page for Individual and Roth 401(k) plans under Individual 401(k), without marking the Maximize box.

A Single Member LLC that has not elected to be taxed as a corporation is a disregarded entity and taxed as a sole proprietor reporting on Schedule C.  As self-employed, you are your own employer; you make your elective deferral as employee and the employer match/profit sharing contribution as employer.

You can view your Form 1040 by clicking Tax Tools > Tools -> View Tax Summary, then Preview my 1040 (at the left).