Originally Posted by wanaberetiree
Say if I am a contractor and work on W-2 - how will I report my 401K contributions to take advantage of tax deductions?
If you are both an employee on W-2 AND you have self-employment income from your contract work, your solo 401k will be only for your contact work. Between your W-2 employer's 401k (if you use theirs) and your own solo 401k *combined*, you can contribute $17,000 (plus catch-up if you are over 50) as an *employee*. Then as an *employer*, you can contribute additional 20% or 25% of your earnings from your contract work depending how you are set up (sole prop, S-Corp, etc.).
If your contractor work is setup through a contract agency which pays you on a W-2, forget it. You are not eligible for a solo 401k.
You report on your tax return. Tax software like TurboTax or H&R Block At Home will do it for you.
Form 5498 has nothing to do with solo 401k.