Solo IRA Employer Contribution Amount

[JKBoheme]

I'm looking for help to address a problem with the amounts for an employer contribution to a solo IRA.  I'm a self employed consultant (age 66) and want to maximize my contribution amounts.

I've entered the following amounts in TurboTax 2020 for an Individual 401k:

Elective Deferrals = 19,500

Catch up = 6,500

Employer Matching (Profit Sharing) = 37,000 (i.e., 63,000 -26,000)

When I check my the amount in the Self-employed Retirement under Less Common Business Situations, the total amount is only $53,437.  my 2019 amount was $60,258, which was also a bit lower that what I calculated.

Do you know why TT doesn't allow me to get the $63k limit?  Am I entering the info. in the wrong section of TT?  My total income from my consulting biz in 2020 was $173k.

Thanks, John

[Mike9241]

for an individual 401(k) you are right on the amounts for the elective deferral and the catch-up. however, for employer matching, that's limited to 20% of your net Schedule C income reduced by 1/2 your self-employment tax. using your number for net income I come up with about $58K.  you should review the Keogh/Sep worksheet to see how the amount was determined.

[Critter-3]

Did you review the worksheet for this calculation  ... save a PDF of the return with the worksheets in the Print Center under Tools.