1040-US: Catch-up contributions for self-employed retirement plans

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Question

How do I enter catch-up contributions for the purposes of computing the contribution deduction for self-employed SIMPLE, SEP, or Keogh plans?

Answer

Note: For information regarding eligibility and plan requirements for catch-up contributions, refer to IRS Publication 560, Retirement Plans for Small Businesses.

In general, SEP and Keogh plans (with the exception of 401(k) plans) do not permit catch-up contributions unless the plan documents state otherwise.

Use the following fields in Screen Keogh to enter information about catch-up contributions.

Include catch-up contribution in computing maximum allowable contribution: Mark this field to include catch-up contributions in the maximum allowable contributions calculation using the Compute maximum allowable contribution field. To calculate the allowable catch-up contributions for Salary Reduction Simplified Employee Pension Plans (SARSEPs), SIMPLE 401(k), Solo 401(k), or SIMPLE IRA, mark this field.

Catch-up contribution - Solo 401(k)/SARSEP: Enter the amount of catch-up contributions made for a taxpayer / spouse who is 50 years of age or older at the end of the tax year. In this amount, include catch-up contributions designated as qualified Roth contributions. UltraTax CS automatically calculates this amount if the Compute maximum allowable deduction and Include catch-up contribution in computing maximum allowable contribution fields are marked, and the taxpayer is 50 years of age or older as of the end of the tax year.

Catch-up contribution - SIMPLE plans: Enter the amount of catch-up contributions for a taxpayer / spouse who is 50 years of age or older at the end of the tax year. UltraTax CS automatically calculates this amount if the Compute maximum allowable deduction and Include catch-up contribution in computing maximum allowable contribution fields are marked, and the taxpayer is 50 years of age or older as of the end of the tax year.

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