Division T of the Consolidated Appropriations Act, 2023, Pub. L. 117-328, 136 Stat. 4459 (2022), known as the SECURE 2.0 Act of 2022 (SECURE 2.0 Act) Section 116 permits an employer to make additional contributions to each employee of the plan in a uniform manner, provided that the contribution may not exceed the lesser of up to 10 percent of compensation or $5,000 (indexed). According to the statute, Section 116 is effective for taxable years beginning after December 31, 2023. IRS Notice 2024-3 states: "Section 116 of the SECURE 2.0 Act amends sections 408(p) and 401(k) of the Code to permit an employer to make additional nonelective contributions for a year (beyond the 2% nonelective contribution permitted in lieu of the otherwise required matching contribution) of a uniform percentage of compensation up to a specified amount for each employee who is eligible to participate in the employer’s SIMPLE 401(k) plan and who has at least $5,000 of compensation from the employer for the year."
2024 Turbotax Home and Business contains no information regarding the new contribution amount permitted under Section 116.
The link below that Dawn posted says this issue was fixed but I see no mention of this change to the SIMPLE IRA section of Turbotax as of 03/03/25 even after all updates were downloaded.
The problem is Part V of the Keogh, SEP and SIMPLE Worksheet. This section limits the contribution to the sum of $19500 and the matching amount from the employer you entered under Part I, Section 5. This erroneous limit then overrides section IV's contribution limit of $21450 and the amount you entered in part I, Section 5 then overrides it everywhere that amount is needed in the return including the 1040 worksheet and Schedule 1.
