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How are one-person solo 401(k) plan employee and employer contributions reported on the tax return of a sole proprietor in ProConnect Tax? Where in Input Return is the data entered? What category and what fields are used to input the data for the employee contribution and the employer contribution?
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1040 page one Adjustments to Income from Schedule 1 line 16.
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If I want ProConnect Tax to calculate the maximum Solo 401(k) employer and employee contributions for a sole proprietor, do I enter 1 in the Profit-sharing (25%/1.25) (1=maximum) field and 1 in the Total SE elective deferrals (except Roth) (1=maximum) field as shown below?
Can you explain when to use the Profit-sharing (25%/1.25) (1=maximum) field versus the Self-employed SEP (25%/1.25) (1=maximum) field?
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Test it yourself by putting an income on Sch higher than the maximum needed to maximize the deduction. Then you will learn which to use.
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I don’t understand your reply.
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I think Accountant Man was answering this:
"Can you explain when to use the Profit-sharing (25%/1.25) (1=maximum) field versus the Self-employed SEP (25%/1.25) (1=maximum) field?"
Anyway, a 401(k) is not a SEP. A 401(k) is a type of Profit Sharing Plan.
The more I know the more I don’t know.
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Enter a Sch C with $300,000 of profit. Then click a box or whatever to calculate the maximum allowed.