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Solo 401 employer non-elective contributions deduction?

Are Solo 401K Employer Non-elective contributions deductible?   

If so, does Turbotax Home & Business do it?

The Employer Non-elective contributions can be up to 25% of compensation and are in addition to the $19,000 limit (plus $6,000 catchup) with a total combined limit in 2019 of $62,000.

 

I found under: Business=>Less Common Business Situations=>Self-employed Retirement 

Do I put the Employer Non-elective contributions in the "Employer Matching (Profit Sharing) Contributions"  If so, why does it not deduct this amount from the business as a business expense?  In fact, TurboTax H&B puts it on the Keogh,SEP,SIMPLE Contribution Worksheet and calculates the maximum deductible, but then doesn't appear to actually deduct the amount.  Is that because the employer non-elective contributions are not deductible for a solo (individual) 401K?  

 

They seem to be, but I can't figure out where to put them into TurboTax:

 https://www.irs.gov/retirement-plans/one-participant-401k-plans

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1 Reply

Solo 401 employer non-elective contributions deduction?

Resolved:  TurboTax was calculating the maximum because the SEP 4d box was checked on the Keogh,SEP,SIMPLE Contribution Worksheet, which overrides the actual deduction with a maximum deduction, even though this is an Individual 401(k), not a SEP. 

 

To get the accurate deduction, be sure that the "Check here to compute the maximum deductible contribution" for SEPs is UNCHECKED.

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