401k deferral amounts are wrong

Forum|Forum|3 years ago
January 27, 2023
1 reply
8 views

In the desktop version of the 2022 Home and Business desktop product (for Windows), the elective deferral amounts for the individual 401k are wrong. They show as 19,500 for 2022. But the actual amount for the 401k elective deferral for 2022 is 20,500. Per the IRS: One Participant 401k Plans | Internal Revenue Service (irs.gov) The amount in the calculation screen shows as 19,500 and the amount in the Keogh SEP and SIMPLE form (where this shows up and which is the linked form) also calculates as 19,500. When will a software fix be available?

Thanks,

Heidi

TurboTax Home & Biz Windows

DoninGA

Level 15

Where are you seeing the deferral amount of $19,500 for an elective deferral limit to a 401(k) in the TurboTax software for 2022?

I am using the 2022 TurboTax Premier software and I show a limit of $20,500

See screenshot -

wuesteeaAuthor

Level 2

The error message "Using the maximum allowable contribution, {name} can defer a maximum of $19,500 to a 401(k) plan." shows up when 20,500 is entered in the Elective Deferrals field.

Field location in the desktop software = Business > Business Income & Expense > Self-employed Retirement > Individual 401(k) > Elective Deferrals

Turbo Tax Home and Business version = 022.000.0343