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.
Turbotax 2024 Home and Business flags any contribution more than $19500 as an excess contribution, and reduces the deduction. I have updated my software daily but this continues to be an issue. The problem is Part V of the Keogh, SEP and SIMPLE Worksheet. This section limits the contribution to the sum of $19500 and the matching amount from the employer you entered under Part I, Section 5. This erroneous limit then overrides section IV's contribution limit of $21450 and the amount you entered in part I, Section 5 then overrides it everywhere that amount is needed in the return including the 1040 worksheet and Schedule 1. When you right click on the form and bring up the "About" information, the form is still showing the $19500 limits throughout. It appears that this form was only partially corrected and this makes it continue to malfunction.
