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 117 made changes to the contribution limits for SIMPLE IRAs. The standard contribution limit was increased from $16000 to $17,600 for businesses with 25 or less employees. The catchup contribution was also increased from $3500 to $ 3850. This permits a total contribution of $21450. For employees of employers with 25 or less employees (this includes the self-employed), the new limits applied automatically.
But Turbotax 2024 Home and Business flags any contribution more than $19500 as an error, and reduces the deduction. I have updated my software daily but this continues to be an issue. I contacted Intuit but the reps dispute that this provision of the law applies. However, there is no dispute that Section 117 of the Secure Act 2.0 made this change even by the IRS itself..
IRS Notice 2024-2 at p. 25-26 states:
"Section 117 of the SECURE 2.0 Act amends sections 408(p), 401(k)(11), and 414(v) of the Code to increase both the annual salary reduction contribution/elective contribution limit and the limit on additional catch-up contributions beginning at age 50 for a SIMPLE IRA plan or a SIMPLE 401(k) plan for certain eligible employers. For some of those eligible employers, the increased limits apply automatically; while other of those eligible employers must make an election for the increased limits to apply and must also make additional employer contributions. The increased limits are 110 percent of the otherwise applicable limits for 2024.
Section 117(h) of the SECURE 2.0 Act provides that the amendments made by section 117 of the SECURE 2.0 Act apply for taxable years beginning after December 31, 2023."
https://www.irs.gov/pub/irs-drop/n-24-02.pdf
The link Dawn posted below says this issue was fixed but it has not been as of 2/27/2025.
I have downloaded all updates but the Program still does not incorporate the changes from the Secure Act 2.0 at of 02/27/25. This will be last year I purchase a Turbotax product!!!
