topic Re: Traditional IRA contribution in Retirement tax questions

Traditional IRA contribution

CSS1 — Tue, 10 Feb 2026 11:14:04 GMT

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,

Re: Traditional IRA contribution

dmertz — Tue, 20 Feb 2024 01:01:25 GMT

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.

Re: Traditional IRA contribution

CSS1 — Tue, 20 Feb 2024 01:45:29 GMT

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?