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Level 1
January 25, 2022
Question

Self Employed Keogh Contribution

  • January 25, 2022
  • 2 replies
  • 25 views

I have a Self Employed 401K and I am the only member.  According to Fidelity's calculator, I should be able to contribute $19,500 as an individual, $6500 catch up (as I'm over 55) and $18000 employer profit sharing.  So, I should be able to contribute a total of about $44K for 2021.

When I use Turbotax to maximize my contribution, it only seems to calculate the employer portion of the total contribution. 

How do I enter the full amount of my contribution? 

2 replies

Level 8
January 25, 2022

The employee and employer contributions for a self-employed 401(k) go in two different places in TurboTax Home and Business for Windows.

 

  1. Type “self-employed retirement” in Search in the top right corner
  2. Select “Jump to self-employed retirement”
  3. Say YES on Self-Employed Retirement Plans?
  4. Enter your elective deferrals ($19,500), Catch-Up contributions ($6,500) and any already contributed employer profit sharing. Continue.
  5. Enter any Non-Farm Self-Employment Income Adjustment (uncommon). Continue.
  6. Say YES to Keogh, SEP and SIMPLE Contributions
  7. On Your Contributions, check the Maximize box next to your type of plan
  8. Enter any Non-Farm Self-Employment Income Adjustment (uncommon). Continue.

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Level 15
January 25, 2022

It looks like you are using TurobTax Desktop, Home & Business version.  To enter your Individual 401(K) contributions:

  • Open your return, then click on the Business Tab
  • Click on I'll Choose What I Work On
  • Scroll down to Less Common Business Situations and you will see the Self-Employed Retirement Plans section
  • Click on Start or Update 
  • Answer Yes to Did [you] make a 2021 contribution to a 2021 self employed retirement plan contribution?
  • Answer Yes to "Did [you] contribute to an Indvidual or Roth 401(K) plan?
  • Enter your contributions in the appropriate boxes.
  • You will also see a check box to get the program to Maximize Contribution to Individual 401(k)

To Enter Individual 401(K) Contributions in TurboTax Online:

  • Log in and open your return
  • Click on Federal in the black column to the left
  • Click on Income & Expenses at the top right 
  • Scroll down to "Other Business Situations
  • Click on Show More and then select Start or Revisit for Self-Employed Retirement Plans
  • The program will guide you to where you can enter your Individual 401K contributions.  

 

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