For a self employed individual, with Individual 401(k) plan only. No other retirement plans. No IRAs, no Roth accounts. No W-2s. Only 1099 income.
When I select "Maximize Contribution to Individual 401(k)", TurboTax ignores the "Employer Matching (Profit Sharing) Contributions" completely. It considers only the "Elective Deferrals" and "Catch-Up Contributions",
to calculate how much more can be contributed.
But that exceeds the IRS limit of 67500 (for age over 50), when you add the "Elective Deferrals", "Catch-Up Contributions", "Employer Matching (Profit Sharing) Contributions" and what the software calculated that I can contribute more.
I even spoke with Intuit customer service (have a case number) and was told that this calculation is correct and the "Employer Matching (Profit Sharing) Contributions" is not counted towards the IRS limit of 67500. Is that correct, because it does not sound right to me.
