Can turbotax process a contribution to a Cash Balance Plan? If so, how?

[sajidini1990]

I have a single member LLC (pass-through for tax purposes).  I have set up a defined benefit plan through the LLC and contributed money to it (about $100,000).  How do I enter this amount in TurboTax.  The amount should end up on line 16 of Schedule 1 (as it is a "qualified plan").  Turbo tax is giving the option of contribution to 401K, SEP, SIMPLE etc which have a cap on the deduction amount (much lower than 100,000). On the other hand the defined benefit plan would allow me the full deduction.  I would appreciate guidance on how to enter it in TT.  

[HopeS]

If you're self-employed and setting up a Keogh for yourself as the sole participant, a fairly common choice is a defined contribution plan that includes both money-purchase and profit-sharing plans. There's other information on contributions to defined benefit plans. Since defined contribution plans are the most common setup for a Keogh you'd create for your own plan, that's what we are going to look at here -- a sole participant-defined contribution plan.
 

Log in and click Take me to my return

2.       On the left menu, under 2022 Taxes, select the Federal 

3.       Select the Income & Expenses tab along the top. To get to the full listing of Income and Expenses you may be asked to, "select options that apply to you," click Continue and then Check for more tax breaks, then See a list of all tax breaks

4.       Scroll down to the Other Business Situations section and click the blue hyperlink Show more

5.       Click Start/Revisit next to Self-Employed Retirement Plans

6.       Click Yes to KEOGH, SEP, SIMPLE Contributions

7.       Next, answer the questions to enter your retirement. See the Screenshot below:

@sajidini1990 

[dmertz]

A contribution to a defined benefit plan would be entered in the box for Defined Benefit Keogh.  TurboTax will place the contribution on line16 of Schedule 1 with the "DB" notation.

[serpilio]

Hi Dave, 

I followed your instructions to input the Cash Balance Plan contribution into the Keogh Defined Benefit section of Turbo Tax.  In addition to the Cash Balance Plan, there were contributions to a 401k.  The 1065 k1 has a total of $186,000 on line 13R.  This should be $61,000 for the 401K and $125,000 for the Cash Balance Plan.  I'm now getting an error for the $20,500 employee deferral amount to the 401K.  Please help!

[DaveF1006]

 When you get to Box 13 and enter the $186K in the proper section, record 0's for the remainder of th entries. This should clear the error.

@serpilio 

[serpilio]

Thanks for the response Dave.  I made the Cash Balance Plan contribution under the DB Keogh Plan.  I don't have the screen you referenced as I'm using TurboTax Home and Business software.  The K1 line 13R included the Cash Balance Plan contribution and the 401K contribution.  After inputing the Cash Balance Plan amount, I was getting errors on the 401k I entered.   I input the 401k amount into SEP and eliminated the error.  I also then put the total amount from Cash Balance and 401k/SEP in the response to the total K1 amount.  If there was some other way I should have handled the entries, please let me know.