For 2024, SIMPLE IRA employee (and self-employed) contribution limit is increased to $17,600 by Secure Act 2.0. But turbotax flags any contribution more than $16,000 as an error, and reduces the deduction.
Here is the rule:
Employees may defer up to $16,000 for 2024 ($19,500 if age 50 or older), however, the annual deferral limit and the age 50 catch-up contribution amount for employees will increase by 10% of the 2024 limit for employers with no more than 25 employees.
The software isn't fully implemented yet.
If you are using the "Desktop" software, check for updates on 9 and/or 16 January to see if the weekly update fixes it. (I usually wait until a day later like 10 or 17 Jan).
If you are using the "Online" software, go thru the entry again on 10 and/or 17 Jan to see if it gets set right.
The error described here has not been fixed.
Do we have an estimated timeline from Intuit for when it will be fixed, or a workaround that permits filing electronically (i.e., does not involve overriding on the form)?
If you are using the Desktop software, make sure you install this week's update first
Still a problem?
Don't know...you might have to call Customer Support:
Yes, I am using the updated version of TurboTax Desktop.
I called support a week ago. The agent was very nice and said he would pass my report on to his supervisor. I haven't heard back.
I don't see a way to make a written bug report or talk with someone from their product team. Hopefully someone at Intuit is monitoring this forum.
Best,
Jared
I am having the exact same issue. I update daily and this continues to occur.
I'm having the same issue for Maximizing Traditional SEP contribution. Fully updated as of 2025-02-07
This continue to be a problem. Turbotax is not updated to include the law SECURE 2.0 as of end of February 2025
Anyone from Intuit care to weigh in on when this bug will be fixed?
I already reported the issue to customer support using the general phone number, but that was more than a month ago at this point.
This bug appears to have been fixed in the update that was made available this morning. I am no longer seeing the error.
Alas, it looks like I spoke too soon.
While there is no error, it looks like the calculation is still incorrectly limited. On the Keogh/SEP Wks:
- Part IV, line 3 is now calculating correctly
- Part V, lines 1 and 2 are still at the old limits (not using the number from Part IV, line 3)
This results in an incorrectly small deduction on Schedule 1, line 16. Intuit: Please fix this problem.
The good news is that I can override Part V, lines 1 and 2 manually, and it gives the correct numbers. So I may need to file via paper (because, as I understand it, TurboTax does not permit an electronic filing if you override numbers), but at least I don't have to start over with another tax prep program.
Even after the latest updates, Turbotax is still limiting my contribution to the 19500 amount. 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. So it overrides the 21450 maximum amount from Section IV and the amount you entered in Part I, Section 5. The lower, overridden amount is then transferred to the rest of the return into the 1040 worksheet and Schedule 1 thereby lowering your deduction. If Section V would be fixed like Section IV was already, then the forms would be correct. If you right click in the form and bring up the "about" section, it still contains the incorrect $19500 limit throughout the "about" section. It appears the Form was only partially updated making it continue to malfunction.
This experience has been reported and is under investigation. Thank you for your patience.
This situation is expected to be corrected by the software update to be released on March 20th.
Today's update did fix the issue. However, please note that if you look at any of the "about" information in the program regarding this topic, it is still showing the incorrect amounts. It is no longer issue because the program and forms utilize the correct maximum amounts.