Question

multiple businesses but one Solo 401k Plan / problems entering on taxes

Forum|Forum|6 years ago
October 10, 2019
1 reply
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Turbo Tax is not allowing me to enter my Solo 401k Employee Contribution for last year. I think the problem is that I have multiple businesses entered under the business section. The income and expenses are all separated per business. However, the self employment 401k contribution (Solo 401k) is in another section where it lumps all business together - it's not directly attached or related to the business my Solo 401k is set up for. When you add up my net income for all businesses, I am showing a net loss because of one of the businesses. Since there is a loss, it's not letting me report my 401k contribution. That's my guess? Any insights? I am trying to complete my 2018 taxes that I filed an extension for. Help!

TurboTax

D

dmertz

Employee

If you are 100% owner of each of the businesses, these businesses likely constitute a controlled group which must be treated as a single employer for retirement-plan purposes and TurboTax is behaving correctly in aggregating the profit and losses in determining your net earnings, resulting in you having no net earnings to support a solo 401(k) contribution.