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?
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.
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).
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.
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.
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).