topic 401k deferral amounts are wrong in Retirement tax questions

401k deferral amounts are wrong

wuesteea — Mon, 23 Feb 2026 10:00:09 GMT

In the desktop version of the 2022 Home and Business desktop product (for Windows), the elective deferral amounts for the individual 401k are wrong. They show as 19,500 for 2022. But the actual amount for the 401k elective deferral for 2022 is 20,500. Per the IRS: One Participant 401k Plans | Internal Revenue Service (irs.gov) The amount in the calculation screen shows as 19,500 and the amount in the Keogh SEP and SIMPLE form (where this shows up and which is the linked form) also calculates as 19,500. When will a software fix be available?

Thanks,

Heidi

Re: 401k deferral amounts are wrong

DoninGA — Fri, 27 Jan 2023 18:43:24 GMT

Where are you seeing the deferral amount of $19,500 for an elective deferral limit to a 401(k) in the TurboTax software for 2022?

I am using the 2022 TurboTax Premier software and I show a limit of $20,500

See screenshot -

Re: 401k deferral amounts are wrong

wuesteea — Fri, 27 Jan 2023 23:19:46 GMT

The error message "Using the maximum allowable contribution, {name} can defer a maximum of $19,500 to a 401(k) plan." shows up when 20,500 is entered in the Elective Deferrals field.

Field location in the desktop software = Business > Business Income & Expense > Self-employed Retirement > Individual 401(k) > Elective Deferrals

Turbo Tax Home and Business version = 022.000.0343

Re: 401k deferral amounts are wrong

wuesteea — Fri, 27 Jan 2023 21:11:40 GMT

SW build number is "0343". Previous post mistakenly thought it was a phone number.

Re: 401k deferral amounts are wrong

DoninGA — Fri, 27 Jan 2023 21:48:18 GMT

0343 is the current version number for 2022.

I will need to page one of our other volunteers who uses the Home & Business edition for assistance @VolvoGirl

Re: 401k deferral amounts are wrong

dmertz — Fri, 27 Jan 2023 22:13:32 GMT

This area of 2022 TurboTax is still buggy, Despite TurboTax issuing the error message and showing an incorrect calculation on Part III of the Keogh, SEP and SIMPLE Contribution Worksheet, TurboTax seems to do the calculation correctly behind the scenes and produce the correct deductible amount on Schedule 1.

This worksheet is problematic every year and TurboTax Product Quality folks don't seem to give it much concern. The individuals who make the necessary cost-of-living modifications to this worksheet every year don't seem to have a firm grasp on what they are doing.

Re: 401k deferral amounts are wrong

VolvoGirl — Fri, 27 Jan 2023 22:45:21 GMT

Sorry, I have Windows Home & Business. I can't get it to show me any screens saying 19,500. Are you using the 2022 program? Try doing another update. Go up to the top black menu bar Online then check for updates.

I don't understand this section. I put in 300,000 of schedule C income and it says I can contribute 67,500 to qualified plans. I put in 22,000 for individual 401k and did not get any error. And it says the max you can defer to all your 401k plans is 27,000. Where did it get that amount?

Re: 401k deferral amounts are wrong

VolvoGirl — Fri, 27 Jan 2023 22:51:42 GMT

When I go to the keogh/sep worksheet it says on line 9 Allowable elective deferrals ...(not more than $20,500) but then the amount on line 9 does say 19,500 and on line 15.

Re: 401k deferral amounts are wrong

dmertz — Fri, 27 Jan 2023 23:46:52 GMT

Right, Part III of the displayed worksheet is a mess but is ultimately unused by TurboTax because TurboTax does the correct Part III calculation behind the scenes and uses that result instead. Such silliness has been built into this worksheet for years, making for a software-maintenance nightmare.