Bogleheads.org

[Topic is now in Personal Finance (Not Investing) - tax question. mod mkc]

I just received a 1099-R from Vanguard for an excess contribution I made to my solo 401(k) in 2024 and withdrew in 2024 (bad advice from my accountant).

There are two amounts listed in Box 1--the amount of excess distribution and the return on the excess distribution. It is all listed as taxable in Box 2a. The code in Box 7 is P.

I believe I do not have to pay tax on the return of the distribution (because the amount is part of my taxable income) but I do have to pay tax on the return on my 2024 tax return.

Is this correct? How do I do this?

All advice welcome. Greg

Okay, they have come along on that point. Thanks for your help.

Now they are saying something else that is curious. I set up the plan so I can make an after-tax contributions to the solo 401(k) and then do a in-plan Roth conversions (mega back-door Roth). The representative told me that if a contribute and do the in-plan conversion in 2025 for the 2024 tax year, the in-plan Roth conversion is taxable for 2025. That cannot be right because the in-plan Roth conversion is not taxable because I am contributing after-tax dollars. Am I correct?

Thanks. I just forwarded this to my client services representative.

Thanks. That is what I thought. I now have to go back and explain to Employee Fiduciary why they are incorrect.

What is the deadline for an employer contribution for the 2024 tax year? I thought that December 31, 2024 is the deadline for employee contributions and April 15, 2025 is the deadline for employer contributions but my plan provider is telling me both deadlines are December 31, 2024.

Thanks.

I have two 403(b) plans, a 457, and a solo 401(k). My understanding is the 415(c) limit is $69,000. One 403(b) plan is employer contribution only. For the other 403(b) plan, I contribute $23,000, plus the $7500 catch-up, plus there is a 2:1 employer match up to 2.5 percent of income.

For purposes of the 415(c) limit, I believe I add both mine and my employer's matching contributions to my two 403(b) plans, subtract out my $7500 catch-up contribution, add my employer contributions to my solo 401(k) plan, and ignore my 457 plan. That number cannot exceed $69,000 in 2024.

I have cobbled this together from reading 415(c), various revenue rulings, and WCI blog.

Is this correct?

I need some mortgage advice. Under contract for a $915,000 home. Interest rates are around 7 percent. Will wait to closer to closing to lock in interest rate. Does it make sense to put more than 20 percent down? Should I purchase points to lower interest rate? All thoughts appreciated.

I am 55.

I have about $110K of schedule C income. I max out my contributions to a solo 401(k). I max out my contributions to my 403(b) from my W-2 job.

I am wondering whether it is worth exploring the possibility of setting up a cash defined benefit plan. I am not sure how much I can save in taxes and how much I would be able to contribute.

All advice welcome before I get too far down this path.

Has it been 41 weeks merely to have it updated on the IRS website that they are processing it? I tried calling and I got directed back to the IRS website.

I could use some help. I sent my 1040-X to the IRS six weeks ago, with delivery confirmation. It was received. I went to the IRS site, Where's My Amended Return? I provided the information requested and it had no record of my return. It says it takes up to three weeks to log the return but I have waited six weeks. Any suggestions? I know how it takes a while to process but I want to make sure that it has been logged correctly.

[Topic is now in Personal Finance (Not Investing) - mod mkc]

In 2023, I converted a SEP-IRA to a solo 401(k). I did not make contributions to the solo 401(k), only to the SEP-IRA before it was converted. At the end of 2023, I had over $250K in the solo 401(k). Does anyone know whether I need to file a Form 5500EZ for 2023 and, if so, what I include for the contributions? Thanks.

Happy New Year. I set up a Vanguard solo 401(k) last year (2023) and rolled over funds from my Vanguard SEP-IRA. I just went to the Vanguard site (January 1, 2024) to make contributions to the solo 401(k) for calendar year 2024 and there is no tab to click on to let me do so. There is a tab to transact but that does not let me contribute additional funds. Advice?