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Hints for solo 401k taxes and turbotax

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  • Hints for solo 401k taxes and turbotax

    Do my own taxes, first year I'll need to figure out backdoor roth stuff (lots of good info on this site on that) and solo 401k stuff.

    Any hints on using turbotax to do solo 401k stuff for my spouse? Has sole proprietorship EIN# and several sources of 1099 income.

    Related question: when do I have to start reporting info on my retirement accounts? Isn't it related somehow to fund balances? So far haven't reported any of this, but early attending, not much saved yet...

  • #2
    If you have one-participant 401k plan(s). The plan sponsor is responsible for having IRS Form 5500-EZ filed when the balance of all participants in all plans > $250K.

    The designated administrator must file this form by 07/31 following any year the balance(s) are > $250K. This is a filing of the plan separately from any individual/business tax returns.

    There are serious penalties for late filing of $25/day. Although, there is a penalty relief program that can mitigate this to $500/year with a limit of $1,500.

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    • #3
      bumping this.

      i made EMPLOYER side contributions to solo 401k for 2017.

      approx 10k on approx 45k side hustle income.

      i'm entering it into turbotax as "employer match" for individual 401k. it's showing up as income. i'm worried that TT is confused or that i'm double counting the money. my taxes owed dropped when I entered this figure so it doesn't seem like it's double counting.

      when i put in all of my 1099s I get the correct figure on the income side but it almost looks like it's double counting the employer contributions i entered.

      questions

      a) I can't decrease my 1099-MISC inputs by the amount I shoved into the s401k right? that seems totally wrong.

      b) there is a separate section for "Keogh" plans, I'm wondering if I should be using that.

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      • #4
        I don't use TT but it sounds as if you may have over-contributed to the solo-k. I'm coming up with around $8,364, which is based on your having no deductions from the gross of $45k - is that causing the problem?

        If not, you may want to start a new thread so other TT users will see.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5




          I don’t use TT but it sounds as if you may have over-contributed to the solo-k. I’m coming up with around $8,364, which is based on your having no deductions from the gross of $45k – is that causing the problem?

          If not, you may want to start a new thread so other TT users will see.
          Click to expand...


          I actually talked to Laura about my contribution amount which she said was correct. Where are you getting your figure?

          I did [[gross] - [1/2 self employment tax]] * 0.2.

          It's not so much the amount that I'm confused about it's where to enter it.

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          • #6


            I actually talked to Laura about my contribution amount which she said was correct. Where are you getting your figure? I did [[gross] – [1/2 self employment tax]] * 0.2. It’s not so much the amount that I’m confused about it’s where to enter it.
            Click to expand...


            That is the correct formula, but 20% of $45k is $9k, which will be even less after deducting SE tax, or I'm just totally confused, too. Not for the first time  :roll: (Actually, I just realized that I used FICA, not Medicare only, so the result will be higher than what I calculated, but still < $9k.) Maybe you made > $45k?

            However, since you really want help with TT, I do think you'll get more traction with a new thread.
            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

            Comment


            • #7
              yeah sorry i was estimating

               

              actual:  $ 52,233.50

              solo 401k: $ 10,146.70

               

              as far as new thread goes, this one is called "solo 401k taxes and turbotax," so....  

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              • #8




                yeah sorry i was estimating

                 

                actual:  $ 52,233.50

                solo 401k: $ 10,146.70

                 

                as far as new thread goes, this one is called “solo 401k taxes and turbotax,” so….
                Click to expand...


                Yeah, I get it, but new threads get more attention. Plus the only people who are "notified" on old threads are the people who have already participated in that particular thread. Try it and see.
                Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                • #9
                  If you do start a new thread, let me know because I'm still trying to figure it out!

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                  • #10
                    It goes on Form 1040 line 28, however TurboTax gets it there. You should be able to search for "self-employed retirement" in TurboTax.

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                    • #11
                      I think I finally got to it but the TT search box stuff is clearly talking about an older version of TT.

                      Honestly I figured it out yesterday and now I can't find it again.

                      Not an easy-to-use part of TT....

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