Hello Turbotax community,
I am an idiot. I had a W-2 income, for which I maxed out on my 401K in 2023 and also had self-employment (solo proprietorship) income, where I started a solo 401K. I was wrongly under the assumption that I could claim $22500 employee contributions for the solo proprietorship in addition to my W-2 related 401K. Thankfully, I realized this before submitting my taxes and before I had invested employee contributions money via my self-employed 401K investment broker. I am in the process of getting my employee contribution ($22500) of my self-employed 401K back from my investment broker (before April 15), but they mentioned they will issue a 1099-R and report this refund to the IRS (dunno when I will get it?). My question is, how do I report this in Turbotax for Mac?
The way I see it, I have two options:
1) Report $22500 employee portion of my self-employed 401K as part of my schedule C and then also report the 1099-R. That way, my tax is appropriately calculated
2) Ignore the 1099-R (I don't even know when I will get it from my 401K investment broker. Pretty sure it won't be before the tax deadline) and don't make any mention of the employee portion of my self-employed 401K on my taxes (which is correct, as I cannot make any contributions there)
I suppose a third option is a variation of (1) where I pay some taxes and file for an extension. Then once I get the 1099-R, I go with (1).
Thoughts?
