Incorrect limits on 2020 Solo 401K elective deferrals and "catch up" contribution.

[mwarney]

Confirmed fixed...  Still displays incorrect component amounts on forms but does correct calculation.

[Cynthiad66]

I suggest that you wait until everything is correct and showing properly on the return.  

Contribution limits in a one-participant 401(k) plan

The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities. The owner can contribute both:

• Elective deferrals up to 100% of compensation (“earned income” in the case of a self-employed individual) up to the annual contribution limit:
  • $19,500 in 2020, or $26,000 in 2020 if age 50 or over ($19,000 in 2019, or $25,000 in 2019 if age 50 or over); plus
• Employer nonelective contributions up to:
  • 25% of compensation as defined by the plan, or
  • for self-employed individuals, see discussion below

If you’ve exceeded the limit for elective deferrals in your 401(k) plan, find out how to correct this mistake.

[noname87]

The verbiage might be fix but when I run the federal error check I get an error. It says the maximum elective deferral is 19,500 which is correct. However when I enter 19,500 I get an error message when I run the error check.

[MarilynG1]

@noname87 Click this link for more info on the Elective Deferral Error.