Yes, there is a tool within TurboTax to help you determine how much you can contribute.
Use the steps below to go to the self-employed retirement
section of your return. Go through the
screens until you get to the question regarding making a contribution to an
individual 401k where you will indicate that you have (or are)
contributed. Then, there will be a
check-box near the entry for the amount you contributed or plan to
contribute. The box is labeled Maximize. Checking the box will allow TurboTax to
calculate the maximum that you can contribute based on your business income.
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On the top row of the
TurboTax online screen, click on Search (or for CD/downloaded TurboTax
locate the search box in the upper right corner)
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This opens a box where you
can type in “self-employed retirement” (be sure to enter exactly as
shown here) and click the magnifying glass (or for CD/downloaded
TurboTax, click Find)
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The search results will
give you an option to “Jump to self-employed retirement”
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Click on the blue “Jump
to self-employed retirement” link
