topic As a senior over 70 1/2 years old and still employed how do I enter a deductible solo 401k contribution for 2016? in Retirement tax questions

As a senior over 70 1/2 years old and still employed how do I enter a deductible solo 401k contribution for 2016?

owensralph60 — Thu, 06 Jun 2019 09:43:35 GMT

Your contribution is made up of 2 pieces. The profit shar...

Fern — Thu, 06 Jun 2019 09:43:37 GMT

Your contribution is made up of 2 pieces. The profit sharing piece is based on net income.

Salary Deferral Contribution: 100% of the owner’s self-employment earnings up to the maximum of $18,000 or $24,000 if age 50 or older can be contributed to a Solo 401k.

Profit Sharing Contribution: The employer contributions is limited to 25 percent of the entity’s overall self-employment earnings. Income that is attributable to passive types of investments are not considered self-employment earnings.

To enter the contribution in Turbo Tax:

Select the Business Tab
Select Continue on the Let’s Find Some Business Expenses screen.
Select I’ll Choose What to Work on at the next screen
Scroll down to the Less Common Business Situations section.
Select Start or Update at Self-employed Retirement

Here is where you can enter a contribution to a Solo 401 K.

Answer does not consider the operative word "deductible";...

owensralph60 — Thu, 06 Jun 2019 09:43:39 GMT

Answer does not consider the operative word "deductible"; TurboTax automatically treats as non-deductible! How do I enter to make deductible as per regs allow?

The deductible amount of self-employed retirement contrib...

dmertz — Thu, 06 Jun 2019 09:43:40 GMT

The deductible amount of self-employed retirement contributions is reported on Form 1040 line 28 after entering them as described in the answer.