401K's are supposed to be pre-tax. Why do you have to pay tax on the 1099 when you can put it in a 401K. It's taxed when you withdraw money as deferred. Where do you enter this in Turbo Tax - from an outside 401K to get credit for it to reduce your taxes?
Is the settlement being paid out on a W-2 or a 1099? Was the original income supposed to be reported on a W-2 or 1099?
And if it was and should be on a 1099 then you must still pay the SE taxes on it even if you can take the solo 401K contribution on the form 1040 line 28.
To enter the solo 401K contributions ...
Is the settlement being paid out on a W-2 or a 1099? Was the original income supposed to be reported on a W-2 or 1099?
And if it was and should be on a 1099 then you must still pay the SE taxes on it even if you can take the solo 401K contribution on the form 1040 line 28.
To enter the solo 401K contributions ...
To make a solo 401(k) contribution, this income will have to be considered to be income from self-employment, income that is reported on Schedule C or Schedule F.
As far as I know, Fidelity does not offer a Designated Roth Account in their self-employed 401(k). You can't contribute to another employer's 401(k) plan based on your income from self-employment.