Tax Return Question - Solo 401k

[leevs11]

Ok this is a very specific tax return question related to using the H&R Block tax filing tool.

I have a solo 401k and need to report the contributions. I cannot find a place to enter this in the H&R Block software. Has anyone else had any luck with this?

I tried entering it under business expenses, but that seems to only calculate the amount that would be related to the employer contribution, not employee. Ex it's applying the 25% of profit calculation to the contribution.

Any help would be appreciated!

[seattlecyclone]

I don't know your tax software. On the paper forms this amount goes on Schedule 1, line 16, labeled "self-employed SEP, SIMPLE, and qualified plans." Maybe a search for that terminology would be helpful?

[leevs11]

I don't know your tax software. On the paper forms this amount goes on Schedule 1, line 16, labeled "self-employed SEP, SIMPLE, and qualified plans." Maybe a search for that terminology would be helpful?

That's the strange thing, it's putting that amount there, but is calculating it as 25% of the profit, not the full contribution amount.

[terran]

Sometimes they're referred to as Keogh plans in tax software, I don't really know why.

[bacchi]

From the top, "Take me to," then "Adjustments," which is the main category after "Income," and then "Keogh, SIMPLE, and SEP Contributions."

Take me to --> Adjustments --> Keogh, SIMPLE, and SEP Contributions

[leejam86]

I am a CPA. There are two sides of a solo 401k, the employee portion and the employer portion. The employee portion must be run through your W-2 with the payroll provider you are using. This must be done during the tax year. The employer portion is the other side which can be 25% of your W-2 wages. This amount can be determined after the tax year.

[terran]

I am a CPA. There are two sides of a solo 401k, the employee portion and the employer portion. The employee portion must be run through your W-2 with the payroll provider you are using. This must be done during the tax year. The employer portion is the other side which can be 25% of your W-2 wages. This amount can be determined after the tax year.

... if you're taxed as an s-corp, not a sole proprietor.

[leejam86]

I am a CPA. There are two sides of a solo 401k, the employee portion and the employer portion. The employee portion must be run through your W-2 with the payroll provider you are using. This must be done during the tax year. The employer portion is the other side which can be 25% of your W-2 wages. This amount can be determined after the tax year.

... if you're taxed as an s-corp, not a sole proprietor.

Correct, I am assuming he is asking as an S Corp since he is an employee since he mentioned employee contribution. He would not be an employee if taxed as Schedule C or Partnership so you would only be eligible for the employer contribution.

[terran]

While you may be correct that elective contributions aren't technically employee contributions for a sole proprietor, they're frequently referred to as such, including in solo 401(k) plan literature. Either way, a sole proprietor is able to make both "employee"/elective deferrals and employer nonelective contributions.

Actually, looking into this further, even the IRS refers to these as employee deferrals.

Elective deferral. An elective deferral is the contribution made by employees to a qualified retirement plan.

• Non-owner employees: The employee salary reduction/elective deferral contributions must be elected/made by the end of the tax year and deposited into the employee’s plan account within 7 business days (safe harbor) and no later than 15 days.
• Owner/employees: The employee deferrals must be elected by the end of the tax year and can then be made by the tax return filing deadline, including extensions.