I am one of two partners in an SCorp and i receive a W-2 and a K-1 (no 1099). Turbo Tax will not let me enter my employee solo 401k contribution, it says i need to have a 1099 or K-1. As mentioned, i have a K-1 and it is fully entered which should trigger that screen to be available.
I had a similar problem last year and Turbo Tax staff advised me to start an entry for a self employed business and enter only as much info as is required. This opened up the solo 401k screen and i entered my contribution. Then i was told to go back and delete that 1099. I did this and it worked beautifully.
This year however when i go back and delete the self employment it also deletes the solo k contribution. What can I do?
According to the IRS, contributions to a retirement plan can only be made from compensation to an S-Corp shareholder. You also can’t establish a self-employed retirement plan for yourself solely based on being an S corporation shareholder.
You can make salary deferral contributions to the 401(k) plan based on your Form W-2 compensation and your employer can make matching or nonelective contributions to the plan based on your Form W-2 compensation as an employee.
Read more here: IRS: Retirement plan FAQs regarding contributions - S corporation
[edited to remove/revise previous answer 03/19/2024 | 10:26 am PDT]
PatriciaV's reply does not apply because it overlooks the fact that you are a shareholder in the S corp, not a partner, and you are not self-employed. Deposits to your solo 401(k) must be made by the S corp, reported on the S corps tax return. Your elective deferrals are required to have been reported in box 12 of your W-2. The only entry permitted in TurboTax for your individual tax return is to enter the amounts from box 12 of you rW-2 into box 12 of TurboTax's W-2 form, no other entries in TurboTax.