dmertz
Level 15

Retirement tax questions

TurboTax's screen that indicates how much more you can contribute is notoriously misleading.

 

[Disregard what follows in this post and see the follow-up posts below.]

I'm guessing that your net profit from self-employment is $17,955 and the deductible portion of self-employment taxes is $1,269.  Subtracting $1,269 from $17,955 leaves $16,686 available to contribute as a combination of employee traditional elective deferrals and Roth contributions, no employer contribution.

 

Guessing what TurboTax is trying to tell you, I think it's that you can contribute $14,636 beyond the $2,050 of traditional elective deferral that you entered.  You've already contributed $8,000 of that $14,636 as a Roth contribution, leaving only $6,636 that could be contributed as some combination of traditional elective deferral and Roth contribution.

 

If I've guessed your net profit incorrectly, let me know and I'll adjust the numbers.