Currently I am using Turbotax Home and Business. In the business section > self-employed retirement. I have a solo 401K and I've entered the following: Individual and Roth 401(k) plans - Maximiz...
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Currently I am using Turbotax Home and Business. In the business section > self-employed retirement. I have a solo 401K and I've entered the following: Individual and Roth 401(k) plans - Maximize Contribution to Individual 401(k) - YES - Roth 401(k) elective deferrals = $23,500 Your Contributions Enter the amounts that you contributed or will contribute to a Keogh, Traditional SEP, Roth SEP, Traditional SIMPLE or Roth SIMPLE Plan for 2025. I left this empty and clicked maximize to no. Prior years I have used an SEP IRA, but my understanding is since I have a solo 401K, I can do this as an employer contribution. After I go through these screens it gives me Retirement Contributions: Here are your self-employed retirement deductions using the maximum allowable contribution. Note: The maximum you can defer to all your 401(k) plans is $23,500, and you can put more into your plan as profit sharing. Individual 401(k) $0 Roth 401(k) $23,500 Amount contributed $23,500 Maximum allowed to qualified plans $36,162 Amount to contribute by plan due date $36,162 Employer match $0 The $36,162 value is correct in terms of the formula (Net Income - 1/2 SE)*20%. I am unsure here why for employer match is noted $0, but when looking at this intially, I assumed the $36,162 is what it is telling me I can contribute. However, after I go through the person section it gives me the below. Looking at this, it seems to be thinking the roth contribution is deductible, subtracting my contribution from the $36,162. In the end the deduction amount seems right, but unclear why Turbotax framing it seemingly incorrectly. I've tried to delete the Keogh, SEP, Simple Contribution worksheet, but it still gives me this same result. Keogh, SEP, SIMPLE and /or 401(k) Maximum $0 Amount to be Contributed by Plan Due Date $12,662 Total retirement contributions $0 Amount deductible $36,162