turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

As a senior over 70 1/2 years old and still employed how do I enter a deductible solo 401k contribution for 2016?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
Fern
New Member

As a senior over 70 1/2 years old and still employed how do I enter a deductible solo 401k contribution for 2016?

Your contribution is made up of 2 pieces. The profit sharing piece is based on net income.

Salary Deferral Contribution: 100% of the owner’s self-employment earnings up to the maximum of $18,000 or $24,000 if age 50 or older can be contributed to a Solo 401k.

Profit Sharing Contribution:  The employer contributions is limited to 25 percent of the entity’s overall self-employment earnings.  Income that is attributable to passive types of investments are not considered self-employment earnings.

To enter the contribution in Turbo Tax:

Select the Business Tab
Select Continue on the Let’s Find Some Business Expenses screen.
Select I’ll Choose What to Work on at the next screen
Scroll down to the Less Common Business Situations section.  
Select Start or Update at Self-employed Retirement

Here is where you can enter a contribution to a Solo 401 K.

View solution in original post

3 Replies
Fern
New Member

As a senior over 70 1/2 years old and still employed how do I enter a deductible solo 401k contribution for 2016?

Your contribution is made up of 2 pieces. The profit sharing piece is based on net income.

Salary Deferral Contribution: 100% of the owner’s self-employment earnings up to the maximum of $18,000 or $24,000 if age 50 or older can be contributed to a Solo 401k.

Profit Sharing Contribution:  The employer contributions is limited to 25 percent of the entity’s overall self-employment earnings.  Income that is attributable to passive types of investments are not considered self-employment earnings.

To enter the contribution in Turbo Tax:

Select the Business Tab
Select Continue on the Let’s Find Some Business Expenses screen.
Select I’ll Choose What to Work on at the next screen
Scroll down to the Less Common Business Situations section.  
Select Start or Update at Self-employed Retirement

Here is where you can enter a contribution to a Solo 401 K.

As a senior over 70 1/2 years old and still employed how do I enter a deductible solo 401k contribution for 2016?

Answer does not consider the operative word "deductible"; TurboTax automatically treats as non-deductible! How do I enter to make deductible as per regs allow?
dmertz
Level 15

As a senior over 70 1/2 years old and still employed how do I enter a deductible solo 401k contribution for 2016?

The deductible amount of self-employed retirement contributions is reported on Form 1040 line 28 after entering them as described in the answer.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies