Author Topic: Solo/Individual 401k Plan and Turbotax  (Read 2666 times)

Grande

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Solo/Individual 401k Plan and Turbotax
« on: May 12, 2014, 08:51:38 AM »
I am in the process of setting up a Solo 401k (AKA individual 401k) for my wife as she is self-employed. I use TurboTax, have for years. I went back to my 2013 tax return to see how Solo 401k contributions flow thru the software. I couldn't find where I might add Solo 401k contributions to my return.

I'm curious to others' experiences and which Turbotax product they might be using.

iamlindoro

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Re: Solo/Individual 401k Plan and Turbotax
« Reply #1 on: May 12, 2014, 09:01:14 AM »
It depends slightly on your company structure.  In my case, as a sole proprietorship, all contributions, including employer contributions, go on 1040 line 28.  This is the line where most people record their own salary deferrals to any 401(k).  That is to say, with a sole proprietorship, you lump the entire amount contributed in one line, when prompted about normal 401(k) contributions.

With an S-Corp, since the employer contribution then becomes a business expense instead of a personal income deduction, the individual contribution goes on line 28, and the corporate profit sharing goes in the filing for the corp.

I use Deluxe Turbotax, the online version.  It took me a little bit to get it figured out as well.

iamlindoro

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Re: Solo/Individual 401k Plan and Turbotax
« Reply #2 on: May 12, 2014, 09:04:20 AM »

Grande

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Re: Solo/Individual 401k Plan and Turbotax
« Reply #3 on: May 12, 2014, 09:15:00 AM »
iamlindoro,


Thanks for this. I am am looking at the 1040 right now and you are correct re: line 28. It's right there in front of me:
 Self-employed SEP, SIMPLE, and qualified plans . I must look really dumb and lazy

 I assume when I put a figure on that line it will all flow down and I'll be good. Thanks.  A side note, I was buying the $99 Home and business edition even though my wife uses an accountant for her LLC. This year I used a family member's Deluxe edition and everything work fine except I didn't get the depth features with sale of stock and mutual fund. That said it worked fine and made no difference with my wife's LLC filing. Good to hear you had success and am in a similar situation.

Thanks