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

Alerts and notices

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. This amount calculates automatically 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. This amount calculates automatically 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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