Solo 401k Excess Contributions
Carry Over
If you contribute more to the Solo 401k plan than you can deduct for the year, you can carry over and deduct the difference in later years, combined with your Solo 401k contributions for those years.
Excise Tax for Excess Solo 401k Contributions
If you contribute more than your deduction limit to a Solo 401k, you have made nondeductible contributions and you may be liable for an excise tax. In general, a 10% excise tax applies to nondeductible contributions made to Solo 401k plans.
Reporting the Solo 401k Excess Contribution Tax
You must report the tax on your nondeductible contributions on Form 5330. Form 5330 includes a computation of the tax.
Click on Catch-up contributions to learn more.
If you contribute more to the Solo 401k plan than you can deduct for the year, you can carry over and deduct the difference in later years, combined with your Solo 401k contributions for those years.
Excise Tax for Excess Solo 401k Contributions
If you contribute more than your deduction limit to a Solo 401k, you have made nondeductible contributions and you may be liable for an excise tax. In general, a 10% excise tax applies to nondeductible contributions made to Solo 401k plans.
Reporting the Solo 401k Excess Contribution Tax
You must report the tax on your nondeductible contributions on Form 5330. Form 5330 includes a computation of the tax.
Click on Catch-up contributions to learn more.