topic Business Simple 401k Trust in Self employed

Business Simple 401k Trust

ataas — Mon, 09 Mar 2026 06:36:31 GMT

I have 3 sources of income, I am retired and receive income from my pension plan, I work for a consulting firm and receive a W2 with no pension plan associated with the company, and I have a small consulting business and receive 1099NEC forms.

The Consulting Business has a Simple 401k Trust which I contribute for savings, as the business trust owner am I allowed to match contributions?

Re: Business Simple 401k Trust

FangxiaL — Thu, 31 Mar 2022 02:14:33 GMT

The total solo 401(k) contribution limit is up to $58,000 in 2021 and $61,000 in 2022. There is a catch-up contribution of an extra $6,500 for people age 50 and over.

As the business owner, you can contribute up to 25% of your net adjusted self-employed income. The IRS calculates this as your net earnings from self-employment minus one-half of your self-employment tax and employee contributions you made for yourself.

Re: Business Simple 401k Trust

ataas — Thu, 07 Apr 2022 02:20:19 GMT

Thanks for the great advise!

Where do I enter this information into the program?? I am 64, and made $85k consulting, I put $48k into my simple 401k plan, where or how do I enter this information into the business program?

Thanks for the all the help.

Re: Business Simple 401k Trust

PatriciaV — Thu, 07 Apr 2022 19:18:53 GMT

Yes, the Solo 401K entry is available in TurboTax Home & Business under Business >> Less Common Business Situations >> Self-Employment Retirement Plans.

In TurboTax your plan is called an Individual 401(k).

Click Start/Update, then Yes, twice.
On the page "Individual and Roth 401(k) Plans," enter the contributions you made this year as Elective Deferrals or Catch-up Contributions.
If you also received Employer match contributions, enter those as well.
If you want this retirement plan to take precedence over other elective deferrals, check the box for "Maximize Contribution to Individual 401(k)."