- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Maximize contribution to Individual 401(k)
I am an over 50 sole proprietor with a solo 401(k). I'm using Turbotax Home and Business.
Current 2021 contributions:
Individual 401(k)
Elective deferrals: $2,083
Catch-Up Contributions: $3,500
Roth 401(k)
Elective deferrals: $17,417
When I check the box for Maximize Contribution to Individual 401(k), I am told: Using the maximum allowable contribution, you can defer a maximum of $23,562 to a 401(k) plan.
When I get to the summary screen, it says:
Here are your self-employed retirement deductions using the maximum allowable contribution.
Individual 401(k) $5,583
Roth 401(k) $17,417
Already contributed: $23,000
Maximum Allowed to Qualified Plans: $10,208
Amount to Contribute by Plan Due Date: $4,625
Where are these last two figures coming from, and what do they mean?