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posted Jun 6, 2019 4:46:05 AM

Why is the program is not allowing a catchup amount for a person over 50 years of age in a self employed 401k?

The program states that the elective 401k contribution cant be over 18,000   The other issue is that the program is not permitting a non deductible IRA contribution over 0

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Level 15
Jun 6, 2019 4:46:06 AM

Enter the regular elective deferral (up to $18,000) and the catch-up elective deferral (up to $6,000) in the separate boxes provided.

If you have contributed all of your net earnings as elective deferrals and employer contributions to your 401(k), you have nothing left to contribute to an IRA.  The sum of the amounts on Form 1040 lines 27, 28 and 29 cannot exceed your net profit from self employment.  Also, the sum of the amounts on Form 1040 line 27, Form 1040 line 28 and your IRA contributions cannot exceed net profit from self-employment.

1 Replies
Level 15
Jun 6, 2019 4:46:06 AM

Enter the regular elective deferral (up to $18,000) and the catch-up elective deferral (up to $6,000) in the separate boxes provided.

If you have contributed all of your net earnings as elective deferrals and employer contributions to your 401(k), you have nothing left to contribute to an IRA.  The sum of the amounts on Form 1040 lines 27, 28 and 29 cannot exceed your net profit from self employment.  Also, the sum of the amounts on Form 1040 line 27, Form 1040 line 28 and your IRA contributions cannot exceed net profit from self-employment.