rpagnotto
New Member

Having trouble with TurboTax handling being employed part of the year and participating in the 401k and being self employed the rest of the year and doing a solo 401k

Employed through August and participated in the company 401k contributing $17,000.  I am 55 so I also do the catch up.  I became self employed in September and want to get the max. amount I can contribute for a solo 401k. I know I should have at least the balance of the $24,500 max or $7,500 but Turbo Tax does not calculate it that way

dmertz
Level 15

Retirement tax questions

TurboTax can't directly handle calculating the maximum permissible solo 401(k) contribution when you also made employee contributions to another employer's plan.  Since you contributed $17,000 to the other employers plan and you can only contribute $7,500 in elective deferrals and Roth contributions to the solo 401(k), enter you elective deferral or Roth contribution explicitly, limiting the total to $7,500.  For the employer contribution, you can get TurboTax to calculate the maximum permissible employer contribution by marking the Maximize box for either a Profit Sharing Keogh or a SEP contribution; the calculation is the same.