topic Self Employed 401(k) in Get your taxes done using TurboTax

Self Employed 401(k)

hesformes — Tue, 24 Feb 2026 08:24:01 GMT

After putting in my business gross income for the year and checking the Maximize box for my self employed 401(k) contribution, under the SELF EMPLOYED RETIREMENT DEDUCTION page, it says the following: "Using the maximum allowable contribution, Henry can defer a maximum of $27,000 to a 401(k) plan." However, on the YOUR RETIREMENT CONTRIBUTIONS page it say the maximum allowable for qualified plans is $32,000. It also has $0 on the line corresponding to Individual 401(k). Also, on the page with all my business info (income, expenses, etc) on the line for Self Employed Retirement it has the large number. I am confused. Which amount is the maximum I can put into my 401(k), 27k or 32k? Thanks to anyone who can help.

Re: Self Employed 401(k)

Anonymous_ — Sat, 21 Dec 2024 21:13:02 GMT

Re: Self Employed 401(k)

dmertz — Wed, 13 Dec 2023 20:58:45 GMT

The $27k number is the maximum permissible elective deferral. The $32k number is the $27k maximum permissible elective deferral plus the maximum permissible employer contribution. (I would guess that the $32k number is your net profit from self-employment minus the deductible portion of self-employment taxes.)