- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
TurboTax's Maximize function for an individual 401(k) contribution cannot be used when you make elective deferrals to another employer's 401(k) plan.
Because you maxed out the elective deferrals to anther employer's plan, use the Maximize function for a SEP plan instead to calculate your maximum employer contribution to the individual 401(k). Absent an elective deferral, the calculation of the employer contribution is the same for both types of plans, 20% (the adjusted value required for the self-employed when the base rate is 25%) of net earnings. Earnings are net profit on Schedule C minus the deductible portion of self-employment taxes.
March 31, 2024
2:51 PM