401k Elective Deferrals

Forum|Forum|6 years ago
February 7, 2020
1 reply
14 views

Under the business income and expenses tab for Individual and Roth 401k plans. Do I enter my employer elective deferrals in the tab input and my employer matching contributions in tab input?

TurboTax Home & Biz Windows

DianeC958

Level 12

You only enter your employer matching contributions. The amount the employees are contributing was withheld from their pay so that amount is not deductible for the business.

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mach_oneAuthor

Level 2

I better start over and explain. The first few months of the year I was SE then got a job with another employer. That employer I elected to defer into the 401k and they matched. So I only enter the matched contribution from my employer? My elective deferral and matching would be with the other employer. I was SE so only a single employee. I'm trying to determine how much I can contribute to my SEP.

LindaB1993

Level 7

SEPs can get set up to contribute up to 25% of salary up to an annual maximum, and that amount is going up in 2019. Maximum contributions are $56,000 in 2019, up from $55,000 in 2018 and marking the third straight year of annual increases..

Do your 401k contributions reduce the amount you can contribute to a SEP IRA?

The answer is no, assuming that the 401k and SEP IRA are with two different companies not under common control. Why? While the employee contribution limits to a 401k are per person, the employer contribution limits (including a SEP IRA for the self-employed) are per plan.

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