topic multiple retirement plans in Retirement tax questions

multiple retirement plans

Kevinapel — Mon, 16 Mar 2020 17:04:33 GMT

I was a full-time employee for the first half of 2019 and contributed $16,466.67 to my employer's 401(k) plan. For the second half of 2019, I was an independent consultant and contributed to a separate owner-only 401(k) account through my new sole proprietor LLC. TT calculates my maximum allowed contribution to my owner-only 401(k) as $40,361, but does not seem to account for the $16K I already contributed to a regular 401(k). How can I make sure I don't overpay into my retirement savings?

Re: multiple retirement plans

dmertz — Mon, 16 Mar 2020 17:31:59 GMT

TurboTax is unable to directly calculate the maximum permissible contribution to an individual 401(k) when you have made elective deferrals or Roth contributions to another employer's 401(k) in the same tax year. You'll need to calculate the permissible amount of elective deferral or Roth contribution yourself and explicitly enter it, then use the Maximize function for a SEP or Keogh Profit Sharing contribution to allow TurboTax to calculate only the maximum permissible employer contribution.