Thank you so much! I will try this, BUT I mis-spoke. I actually want to MINIMIZE my taxes, not maximize my retirement deductions. (I got the total of $41K to shoot for initially from Turbotax "maximize." But now, when I click maximize, it gives me a different number. Sigh.)
I would still like to know the answer to the "25% times what "question I asked, and here is what an IRS publication said, it said 25%...
- Overall limit on contributions
- Total annual contributions (annual additions) to all of your accounts in plans are limited. The limit applies to the total of:
- elective deferrals (but not catch-up contributions)
- employer matching contributions
- employer nonelective contributions (no matching by employee)
- The annual additions paid to a participant’s account cannot exceed the lesser of: 100% of the participant's compensation, or $61,000 ($67,500 including catch-up contributions) for 2022
- However, an employer’s deduction for contributions to a defined contribution plan (profit-sharing plan or money purchase pension plan) cannot be more than 25% of the compensation paid (or accrued) during the year to eligible employees participating in the plan (see Employer Deduction in Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans).
You are kind, I implore your additional help?
