Hi, I have some questions about my self-employed 401k for tax year 2021:
my small business net profit for tax year 2021 is $65017, for self-employeed 401k, I've contributed $19500 for employee side, and $26250 for employer side. Turbotax calculation gives below number. Does that mean I overcontributed and need to withdraw 26250-13453=12797? I called fidelity and they said for employer portion I cannot withdraw as over contribution, I can only roll over the excess portion of 12797 to next year and pay 10% penalty, and file form 5330, if that's the case, how do I use turbotax premier+small business version to file that form? Also, when I review the form "Keogh/SEP Wks" form to try to understand the calculation steps for solo 401k, I see in the "Steps" 2c "Total employer-equivalent portion of self-employment tax" is $871, what's that? how did we get that number? Also based on my calculation, 65017 (net profit)*0.2+19500(max employee contribution limit)=32503, how come turbotax shows "Maximum Allowed to Qualified Plans"=32953 (which is 450 difference from 32503)?Thanks!
Turbotax calculation result:
Individual 401(k): $19500;
Already contributed: $19500;
Maximum Allowed to Qualified Plans: $32953;
Amount to Contribute by Plan Due Date: $13453;
Employer match: $26250.
