Amount to contribute by plan due date for an Individual 401(k) is incorrect

Forum|Forum|4 months ago
February 27, 2026
1 reply
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Why does TurboTax ignore the "Employer Matching (Profit Sharing) Contributions" completely when calculating the remaining "Amount to contribute by plan due date?"

In the "Business Income and Expenses" Section under "Self employed retirement plans," I select "Maximize Contribution to Individual 401(k)" and then enter the correct information on the following pages as asked. For a self employed individual, with Individual 401(k) plan only (no other retirement plans) and only 1099 income, TurboTax calculates the "Maximum allowed to qualified plans" correctly. But then, TurboTax considers only the "Elective Deferrals" and "Catch-Up Contributions" made to calculate how much more can be contributed. It ignores the "Employer Matching (Profit Sharing) Contributions" also made. This is not correct.

If I contribute the "Amount to contribute by plan due date" provided by Turbo Tax, I will exceed the IRA limit.

What am I missing?

Thanks!

SimpletonAuthor

Level 3

Also FYI - When I finish my federal taxes and Turbo Tax shares summary information, one page is for "Retirement Deductions Results." Again, on this page, it ignores the "Employer Matching (Profit Sharing) Contributions" already made and displays an "Amount to be Contributed by Plan Due Date" in bold and red font. If I contributed this amount as it appears to be screaming at me to do, I would exceed the IRS limitations that TurboTax appears to have correctly calculated and displays on this screen as "Amount deductible."

Isn't this an error by TurboTax, or am I overlooking something?

Thanks!