I am 52 and married with 1099-NEC work and an individual 401(k).
While it appears I may have contributed too much in profit-sharing contributions, I am confused by the maximum allowable contribution screen showing $26,000. If I continue to the Your Retirement Contributions screen, I see Individual 401(k) of $27,000, and Profit Sharing Plan of $37,000. Once I pay, I will see the calculations that explain the amount to withdraw; however, this should be removed from profit sharing, and I expect I should be allowed to contribute $27,000 to the individual 401(k). The review screen states the maximum deferral is $27,000, but the preceeding screen states $26,000 for some reason. What could I be misunderstanding?
droslin,
You are right to be concerned. As Fidelity (https://www.fidelity.com/learning-center/smart-money/401k-contribution-limit) notes, the limit was $27K for 2022. I'll report it as an issue. Thank you for the alert.
TurboTax has similar problems with the Keogh, SEP and SIMPLE Contribution Worksheet every year. However, this year, despite this bogus indication from TurboTax and a similar bogus calculation on Part III of this worksheet, TurboTax seems to do the correct calculation behind the scenes and allow the correct deductible amount for contributions to a self-employed 401(k).