I was on the phone for over an hour with a Turbotax CPA yesterday, and she could not figure out the problem and is "working on it". I have exactly the correct 2025 maximum amounts contributed to my solo 401(k) for people over 50, including $5500 catchup in a Roth 401(k). Turbotax is saying something about how this brings my total above the allowable amount. With all the errors in the area of contribution limits in the software already reported this year, I assume that this is one that they're still working on or even haven't found out about yet. The CPA lady seemed quite frustrated, and she ended up having me send my tax file to her from the desktop so she can work on it. Don't know why they keep having so many software errors.....
This issue has been resolved in a software update. Please make sure your program is updated and try transmitting your return again. Log into your program and select Online, and then Check for updates in the top menu.
If after updating this issue still persists, I would like to take a deeper look at this. To do so, I will need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can create one by following the directions below:
- Open your return
- Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”
- This will generate a message that a diagnostic copy will be created. Click on OK
- Please post the Token Number (including the dash) that was generated in the response in this thread
*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)
Rachel,
There has been no update to my TT Home & Business Desktop software since you sent your message.
I have sent you a protected copy of my return. The token number is: 79043410-03600040
Thanks - hope you can figure this out... 🙂
Hope you got the token number - I didn't delete any "phone number" from it.
The forum filter ate part of your token number. You can post a screenshot of it.
Looks like your post with the number got fixed and now shows the full number. Wonder how that happened? Weird.
Thank you @hullian I have received your diagnostic file.
Can you please let me know what State returns you have? I will need to download these states before I can open the file.
After reviewing your diagnostic file, it appears TurboTax correctly reflects the $31,000 total elective 401(k) deferral limit for 2025 ($23,500 base plus $7,500 catch-up).
Please note, your non-deductible designated Roth contributions are made with after-tax dollars and therefore are not deducted on your tax return.
In Forms Mode, review the Keoph/SEP Wks:
- Line 15 shows the correct 2025 contribution limit, $23,500
- Line 17 shows the correct 2025 Catchup limit (Age 50 - 59), $7,500
- Line 20: shows Subtraction for designated Roth contributions
Please let me know if this addresses your issue or if you are encountering an error of some sort. I walked through the review process in the file and didn't hit any snags.
The only thing I’m questioning is why it’s telling me during the interview that I need to take back the $5500 Roth contribution. The forms look correct, and I guess TT will file the return as is, but I still think it’s an error telling me that I need to take back the $5500. I understand that the contribution is not deductible but it IS the way I decided to split out my catch-up contributions, and it is within the $31,000 total allowable contribution.
You are absolutely correct, you can designate as much or as little of the $31,000 contribution to a Roth. However, the amount designated to the Roth will be subtracted from the $31,000 limit in order to come up with the deduction allowed on your tax return.
I don't see anywhere in the interview regarding "taking back the $5,500 Roth contribution". If you would like, you could post a screenshot for reference.
That is a reminder to make the Roth contribution by the due date; however, I'm not sure why it shows it as a negative amount. I will reach out to the development team regarding this message.
The message in no way affects your return, so you can feel confident in filing your return.
Note: I did edit the screenshot so it didn't show your name.