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What forms do I need for Profit Sharing contributions?

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  • What forms do I need for Profit Sharing contributions?

    I make profit share and 401k contributions in my solo 401k, without using a plan administrator. I just calculate using the free online calculators to figure out my contribution limits/amounts.

    I need to amend my 2020 state taxes because my CPA didn't deduct my contributions for some reason. (I need a new CPA). When I amend it, I'll have to show what was contributed with a form I am guessing. I can always send my account statement to show the contribution but I figured it's better to send it on a form.

    So my question is what form exactly is used to report such contributions? I intend on filling one out myself and sending it to the state along with my account statement.

  • #2
    You don’t need to include a form to amend your return. Just amend the return.

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    • #3
      Originally posted by Screwdriver View Post
      I make profit share and 401k contributions in my solo 401k, without using a plan administrator. I just calculate using the free online calculators to figure out my contribution limits/amounts.

      I need to amend my 2020 state taxes because my CPA didn't deduct my contributions for some reason. (I need a new CPA). When I amend it, I'll have to show what was contributed with a form I am guessing. I can always send my account statement to show the contribution but I figured it's better to send it on a form.

      So my question is what form exactly is used to report such contributions? I intend on filling one out myself and sending it to the state along with my account statement.
      Wow I literally was just asking about profit sharing - could you give me an idea on how it helps beyond employer contributions for a solo 401k? from what I've read you can only deduct (as the employer) a maximum of 25% of compensation and that may be inclusive of both 401k and Profit share employer contributions. Can you shed any light on this or give any ideas of what to look at beyond maxing the solo 401k? (My wife and I already max 401k, HSA, etc; just wondering if for solo/self employed there were any other options

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      • #4
        Originally posted by 3ztwint View Post

        Wow I literally was just asking about profit sharing - could you give me an idea on how it helps beyond employer contributions for a solo 401k? from what I've read you can only deduct (as the employer) a maximum of 25% of compensation and that may be inclusive of both 401k and Profit share employer contributions. Can you shed any light on this or give any ideas of what to look at beyond maxing the solo 401k? (My wife and I already max 401k, HSA, etc; just wondering if for solo/self employed there were any other options
        Just ran across this post and I must confess I’m stymied as to how to respond to your inquiries.
        • “…could you give me an idea on how it helps beyond employer contributions for a solo 401k?” stymied. Helps what? Do you mean helps beyond tax deduction and tax deferred growth? Some other kind of help?
        • “Can you shed any light on this…” On what? How it works? If that is the correct %? How to set it up?
        • ”…or give any ideas of what to look at beyond maxing the solo 401k?” Other business deductions?
        • What do you mean by “if…there were any other options” Other plan options? Sure, you can contribute to a SIMPLE IRA, a SEP, a Cash Balance Plan or a 401k. Other options for saving?
        Not trying to be a SA, honestly have no clue. But it’s been a long day.
        Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5
          3ztwint employer contributions and profit sharing contributions are the same thing

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          • #6
            Originally posted by jacoavlu View Post
            3ztwint employer contributions and profit sharing contributions are the same thing
            Thank you! I was just realizing this when I researched further as it appears the limitation on employer deduction is capped at the same amount (25% total comp), I just wasn't familiar with PS plans so I was naive on how it worked, I guess there is no free lunch with the IRS...

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