For older workers 50 and up, additional catch-up contributions are permitted. Catch up contributions are additional elective contributions older workers can make on top of the $18,500 every eligible worker can invest. In 2017, older workers were allowed to make catch-up contributions of $6,000. This amount did not increase in 2018, so workers 60 and over will be allowed to contribute a maximum of $24,500 in elective contributions in 2018, compared with $24,000 in 2017.
When entering a contribution to an individual 401k, and you are over 50 and made a catch up contribution, you need to enter the elective deferral amount and the catch up contribution amount separately. To do so in TurboTax Self Employed:
- Click Federal on the left side.
- On the Your income and expenses page, click edit next to Self-Employment Retirement Plans
- On the Self-Employed Retirement Plans page, click Yes
- In the Individual 401(K) section, enter the amount of the Elective Deferral you made (the maximum amount for 2018 is $18,500 as you know). Only enter the maximum amount in this field.
- Enter the amount of Catch-Up contributions you made (up to $6,000 for 2018) in the Catch-Up Contributions field