Hi
My wife and I total income from 1099NEC for 2024 is $24,000. My wife portion is $14,000. She has a solo 401k with Fidelity. We wanted put $12000 or so in her solo 401k account. However Turbo Tax tell us that the maximum she can defer is $8077. I know the limit is $23,000 for 2024. Additionally she can put another 25% of the net income into her tax deferred account.
Since I am over 60, I did a Roth IRA conversion to the tune of $50,000 in 2024. I don’t think this Roth conversion had anything to do with TT restricting the amount to $8077.
Why is Turbo Tax misleading? How can I correct this? We wanted to put $12,000 into her solo 401k account. Please help.
