Partnership solo 401k-how to report

[Shari]

I need help determining how/where to report the profit sharing contribution and then the catch up contributions for a partnership in a solo 401k. I believe the partnership contribution, which i calculated based on net income to each active partner, goes on Line 18 Page 1 but i am wondering if the contribution is not a deduction for SE earnings on the K-1 Line 14A? Also, how do i report that the partner can take a personal deduction for the catch up on their 1040...as a note on the K-1 or is it supposed to be on the K-1 Line 13R?? any help would be greatly appreciated. Feel free to just call me if easier 810.326.1540 Shari

[SteveStang]

How did you ever resolve this issue? I'm researching to find how best to report the contributions for a solo 401k for a Sch C sole proprietorship (no employees/no family working in business). I have calculated the total deductible employer contribution on Worksheet SEP within Drake Software. And that amount will be reported on Schedule 1, line 16 as a manual entry. My question is where and how to report the "allowable elective deferrals" by the owner. In his case, this would be pre-tax as well.

[terryats]

From IRS, Link. https://www.irs.gov/retirement-plans...0contributions.

See IRC Section 401(c)(3) and (4). Contributions made by the partnership to a pension plan on behalf of a partner are reported on box 13 of Schedule K-1 (Code R), and are reported on Schedule 1 (line 16) to Form 1040 as self-employed retirement plan contributions.

[New York Enrolled Agent]

How did you ever resolve this issue? I'm researching to find how best to report the contributions for a solo 401k for a Sch C sole proprietorship (no employees/no family working in business). I have calculated the total deductible employer contribution on Worksheet SEP within Drake Software. And that amount will be reported on Schedule 1, line 16 as a manual entry. My question is where and how to report the "allowable elective deferrals" by the owner. In his case, this would be pre-tax as well.

Same line 16

[Rapid Robert]

"I have calculated the total deductible employer contribution on Worksheet SEP within Drake Software. And that amount will be reported on Schedule 1, line 16 as a manual entry. My question is where and how to report the "allowable elective deferrals" by the owner. In his case, this would be pre-tax as well."

You cannot use a SEP worksheet for a solo 401k with elective deferrals. Some higher-end software has a worksheet which covers all types of small business retirement plans, and does not require manual entry.

I am concerned that you are not taking the total allowed contribution into account. For a sole proprietor, both the employee deferral and the employer contribution combined cannot exceed the total allowed.

For example, for a high income Schedule C, where the contribution dollar limit is $66,000, if the sole proprietor makes a $22,500 elective deferral, the employer (which is the sole proprietor) can only make at most a $43,500 profit-sharing contribution.