I checked the boxes in TurboTax to maximize my solo 401k contribution.
Now, how can I tell what the maximum amounts are for the following?
1. salary deferral
2. catch up
3. employer contribution
The catch up is easy - that is line 17 on the worksheet. $6,000
But for #1 and #2, these are unclear.
"Allowable elective deferral" (line 9 of TT Keogh worksheet) is $19,000
Is this the same as salary deferral?
Max deductible contribution for MP, PS, SEP & Indiv 401k Plans (line 21) is $17,937. What is this amount, and why is it less than the "allowable elective deferral"?
The allowable catch-up (line 17) is $6000; so shouldn't the max deductible be $19,000 salary deferral + $6000 catch up = $25,000?
If you check the "maximize contribution" box, there is nothing in TurboTax to plainly state what the salary deferral, catchup, and employer contribution amounts should be.
