I have Turbo Tax 2019: Home& Business: Personal & Self-Employed on my computer. I entered my Self-Employed Retirement 401k in the Business Section. Below is where I put the information. My problem is that it does not reflect what the Internet says I can contribute ($56,000+$6,000catch-up) and that any overage will have to be withdrawn or I will be penalized with a tax.
- Business
- Less Common business Situations
- Self-employment Retirement
- Self-employment Retirement Plan (yes) Individual 401k
- Elective Deferral = 19,000
- Catch-up = 6,000
- Max contribution to individual 401k (yes)
- A few slides later it says that 7302 is the amount to contribute by the plan due date which I assume is the tax filing date. HOWEVER, if any more than $19,000is put into the software then it says it has to be deducted before the due date.
- What is interesting is that the amount put into the self-employment Retirement Plan DOES NOT change the refund. I thought it would, but that is ok. What I am afraid of is that by not putting $59,500 in tax return I will have a penalty to pay the IRS.
- Please help me understand.
- Did I enter it in the wrong place?
- Can I just move on or will I be penalized for not declaring the $59,500 401K?
