dmertz
Level 15

Retirement tax questions

TurboTax is correctly flagging as invalid an employer matching contribution that exceeds the employee contribution.  Matching contributions are a dollar-for-dollar match of what the employee contributes, limited to 3% of compensation, so matching contributions must equal employee contributions unless limited to a lower amount by compensation.  (A full $14k of matching contributions would require $466,667 or more of compensation.)

 

Perhaps you are confusing the 3% match with the optional 2% non-elective employer contribution.  However when determining the 2% non-elective employer contribution, only $305,000 of compensation is permitted to be considered for 2022, making the maximum possible 2% non-elective contribution $6,100.

View solution in original post