kkbach
Returning Member

Retirement tax questions

Yes, however the Roth contribution is not excess in any of these cases. For '23, my calculated allowable Roth Solo 401K contribution as employee deferral is 30,000 (22,500 + 7500 >50) and the employer Traditional Solo 401(k) contribution is $36,485. I am a sole proprietor/LLC with a long standing solo401(k), wherein the '23 limit is $73,500 (>50) . I have run these contribution amounts thru multiple calculators (fidelity, vanguard, turbotax's automated maximize) and all produce the exact same amount. Meanwhile, the taxes are previously calculated given my Schedule C entries. I then input the traditional contribution, tax burden reduces. I input the Roth, and it increases, which makes no sense as the tax burden was already built in with my entries. It is a double tax trap within TurboTax as it doesn't produce or allow for producing a form 8606.