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stupidme1
Returning Member

Maximize Contributions to Individual 401(k) does not account for my 403(b) contributions or my 457(b) catchup-contributions. Is this an error in Turbo Tax?

 
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1 Reply
dmertz
Level 15

Maximize Contributions to Individual 401(k) does not account for my 403(b) contributions or my 457(b) catchup-contributions. Is this an error in Turbo Tax?

You mentioned catch-up contributions, so I'll assume that you were age 50 or over in 2023.

 

Your contributions to the 475(b) are subject to a separate elective deferral limit, so those are not involved.

 

As you discovered, TurboTax does not have the ability to account for your elective deferrals to a 401(k), 403(b), the federal TSP, a SIMPLE IRA or a SARSEP plan, so you can't use the Maximize function for figuring your individual 401(k) contribution.  You'll need to do the calculation yourself and enter an elective deferral such that the total of the elective deferrals to all but the 457(b) do not total more that $30,000.

 

You can use the SEP Maximize function to calculate the maximum permissible employer contribution to the individual 401(k) and then make an elective deferral from what remains of your net profit from self-employment after subtracting the employer contribution and the deductible portion of self-employment taxes as long as you don't exceed the $30,000 elective deferral limit between this and the 403(b).

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