SOLO 401K

[Tracy Lee]

Self Employed Schedule C TP (real estate broker) opened a Solo 401K this year and wants to fund it, which form am I looking for in ATX?

This is my first one.  Any words of advice I need as I figure out what his contribution can be?

[Lee B]

https://www.irs.gov/retirement-plans/one-participant-401k-plans

 

[joanmcq]

In Atx, click on SE retirement deduction.  It’s on page 2 of schedule 1 of the 1040.  You’ll be taken to a worksheet that can calculate all the types of plans. 

[G2R]

I was using this worksheet and could not get ATX's calculation to match mine own.  Is the ATX worksheet not calculation a SOLO 401k? The "compute maximum allowable contribution" option #4 says 401k, not solo401k.  OR maybe my calucations are wrong, though I've cross-referenced with a few solo 401k calculators online and they match my calculation.

Here's a screenshot of ATX comparison to my calculation.  The retirement option at the top is #4 (401k).  Client doesn't qualify for catchup contributions.

 

[joanmcq]

it could be that you are mixing elective contributions from another job with the SE calculator.  Off the top of my head.

[GLJEANNE]

It's been too long since I've done one, but that's calculating a SEP.  There's no 25% limit on 401ks, except on the employer portion.

[Abby Normal]

Try this. https://obliviousinvestor.com/solo-401k-contribution-calculator/

[BulldogTom]

1 hour ago, GLJEANNE said:

It's been too long since I've done one, but that's calculating a SEP.  There's no 25% limit on 401ks, except on the employer portion.

That was my thought.   Never done a Solo 401K so watching this thread to see how to record it in ATX.   I have my popcorn out .....

Tom
Longview, TX

[G2R]

5 hours ago, joanmcq said:

it could be that you are mixing elective contributions from another job with the SE calculator.  Off the top of my head.

I believe this is accounted for in this area.  ATX actually auto generates line 9 straight from the W2, box 12, Code D & E. But I tried putting in a ROTH 401k elective deferreal into the W2 data entry and it did NOT add to this amount so I'm even more baffled. 

 

2 hours ago, Abby Normal said:

Try this. https://obliviousinvestor.com/solo-401k-contribution-calculator/

Thanks @Abby Normal As you can see, this matches my own calculation. 

Given this is the line (Line 16, Sch 1) is where you're supposed to put the SOLO 401k contributions, this only way I can see inputting it correctly without an override is to manually do the math myself and add it here. 

If someone else figures it out, I'm all ears!

[jasdlm]

I do a separate calculation for the Solo 401(k) and keep it in the work papers file.  I then enter it in the 401(k) contribution line as shown above.  I haven't found any way to do it through ATX, and the complication (some of my people don't earn tons of income and still have Solo 401(k)s) of the catch-up and checking whether there is any eligibility for an 'employer' contribution, and then one guy has a day job where he defers, so there's that calculation ... I just need a spreadsheet, and then I have backup.