self-employed 401k overcontributio?

cactuswzh2 — Mon, 09 Mar 2026 10:36:24 GMT

Hi, I have some questions about my self-employed 401k for tax year 2021:

my small business net profit for tax year 2021 is $65017, for self-employeed 401k, I've contributed $19500 for employee side, and $26250 for employer side. Turbotax calculation gives below number. Does that mean I overcontributed and need to withdraw 26250-13453=12797? I called fidelity and they said for employer portion I cannot withdraw as over contribution, I can only roll over the excess portion of 12797 to next year and pay 10% penalty, and file form 5330, if that's the case, how do I use turbotax premier+small business version to file that form? Also, when I review the form "Keogh/SEP Wks" form to try to understand the calculation steps for solo 401k, I see in the "Steps" 2c "Total employer-equivalent portion of self-employment tax" is $871, what's that? how did we get that number? Also based on my calculation, 65017 (net profit)*0.2+19500(max employee contribution limit)=32503, how come turbotax shows "Maximum Allowed to Qualified Plans"=32953 (which is 450 difference from 32503)?Thanks!

Turbotax calculation result:

Individual 401(k): $19500;

Already contributed: $19500;

Maximum Allowed to Qualified Plans: $32953;

Amount to Contribute by Plan Due Date: $13453;

Employer match: $26250.

Re: self-employed 401k overcontributio?

AmyC — Tue, 19 Apr 2022 04:58:56 GMT

Here is IRS information for contributions. Here is the guide to find, fix, and avoid errors.

Re: self-employed 401k overcontributio?

dmertz — Tue, 19 Apr 2022 05:47:45 GMT

TurboTax does not support Form 5330. You'll have to download the form from the IRS and prepare it by hand.

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self-employed 401k overcontributio?

Re: self-employed 401k overcontributio?

Re: self-employed 401k overcontributio?