Self Employed 401K-

8 replies
64 views

Since there is no required reporting of contributions unless contributions are in excess of $250,000 how will I know if a client actually made contributions?

VolvoGirl

Level 15

Huh? What client? Why do you need to know if someone else made a contribution? You need to enter all contributions. What reporting is only for over 250,000? That doesn't sound right. @dmertz

raziz1Author

Level 2

Since self employed 401K are self directed and contributions are reported on Schedule 1 to determine the adjustment to income and the custodial entity has not reporting requirement to inform the IRS of contributions how does one know if a client contributed $19,500 or simply nothing? In other words are there any check and to protect us as tax preparers?

VolvoGirl

Level 15

Oh, you are a tax preparer? This is a forum for self prepared Turbo Tax returns. You can't use Turbo Tax as a preparer. You need to ask another professional forum.

dmertz

Level 15

This is not the forum to be asking this question. This has nothing to do with TurboTax.

raziz1Author

Level 2

Please pardon me I thought I was in the tax forum community, anyway I have reached out to my division manager to get to the right place to discuss various tax topics.