50 yrs old filing our 2025 taxes as married filing jointly. We both have a job and are partners in our LLC

[anupambaj]

Me and My wife both are 50 yrs old filing our 2025 taxes as married filing jointly. We both have a job and are partners in our LLC which is taxed as partnership with 30-70 profit ratio. When entering 401k for self employed , i get alert saying i am exceeding the limit for the year , ( 2025 tax year, the individual employee deferral limit is $23,500 (plus an additional $7,500 catch-up for those age 50 or older)  I seems that the turbotax application is not considering that i have a job also.

example

LLC which is taxed as partnership with 30-70 profit ratio .The LLC has an income of 103540 in 2025.  The 30% partner has contributed $6768.62 for the 401k through the job and $24000 through the LLC as employee. The 70% partner has contributed $23383.92 through job and $7500 through the LLC as employee. 

when entering this example i get alert.

[Opus 17]

Let's start with this: How are you filing a return for the LLC?

Unless you are living in a community property state, you must prepare the LLC return on form 1065.  This is not part of Turbotax personal tax version, you have to separately buy Turbotax for business.  You do not put the LLC on a schedule C.  As part of the 1065, you will prepare a K-1 statement for each member that lists their profit, loss, expenses, etc.  The two K-1s are entered on your personal form 1040 return.  The K-1 would have the details to support the amount of the SE 401k.  Note that form 1065 is due March 15, not April 15, unless you get an extension, and the late fee is $200 per month per member.

The only time you can file a 2-person LLC on schedule C is if the only two members are spouses (no-one else), and you live in a community property state.  In that case you must prepare 2 schedule Cs, one for each spouse, listing exactly half (50%) of the income and expenses (it's 50/50 because of community property laws).

My guess is that you are reporting the business wrong if the program thinks only one spouse works. 

[anupambaj]

I have TurboTax business from where i got my K1. But when filling my personal taxes from TurboTax premiere . It is not picking up my personal 401k in calculating the limit. but is limiting me within my business limit

[Opus 17]

@dmertz  can you assist?

@anupambaj  the only thing I can think of is you might have linked both K-1s to the same taxpayer.  When you enter the first K-1 there should be a checkbox for "self" or "spouse" (or it might be in your names, "Is this K-1 for Adam or Betty?").  Then you finish the first K-1, the program asks if you have any more K-1s, and you enter the second K-1, you have to specify the other spouse.  If they were linked to the same spouse it would not see the contributions as separate. 

[dmertz]

The $24,000 contribution must be entered as $23,500 regular contribution and $500 of catch-up contribution.

Also, each partner's self-employment income must be present with code A in box 14 of the Schedule K-1.  For the 30% partner that would have to be an amount greater than or equal to $24,000 plus the deductible portion of self-employment taxes.

For the 70% partner the amount with code A in box 4 of the Schedule K-1 would have to be at least $7,500 plus the deductible portion of SE taxes.