Traditional IRA contribution

Forum|Forum|2 years ago
February 19, 2024
1 reply
12 views

I'm confused about this subject. When I work through the Turbotax section on the IRA contribution it asks me if I want to "Maximize" my contribution. If I check that box Turbotax returns me a number higher than the "permitted" contribution of $7500.00. Why is Turbotax maximizing my contribution at a higher amount?

Thanks in Advance,

TurboTax Home & Biz Windows

dmertz

Level 15

You are in the section for reporting contributions to a self-employed retirement plan. Ordinary personal contributions are to be entered under Deductions & Credits, not business items.

If you are trying to determine the maximum contribution to a SEP-IRA for a SEP plan established under your business, the contribution limit is different than for an ordinary personal IRA contribution and TurboTax uses the worksheet from Chapter 5 of IRS Pub 560 to determine the amount.

CSS1Author

Level 2

Thanks, My eyes glaze over when I try and read IRS publications. Can you tell me what else in our company profile I should look at to determine our maximum contribution or can I take Turbotax word that I can contribute their calculated "Maximum" contribution?