Turbotax won't let me e-file because it thinks I'm over the $27000 limit for 401k. Keeps showing me an error and flagging line 6a on the worksheet for me to change my 401k contribution
This is an error, the contribution limit for 2023 is $30K (including catchup, I'm 55)
I talked to a turbotax agent on the phone and they advised I delete my K1 statement and re-enter it to fix the problem. Spent over an hour re-entering all the partnership data and deductions associated with the business and still flags the same problem
Anyone else having this problem?
I'm pretty sure this is a software bug. How do I reach someone who can fix the code to the appropriate limit?
Please clarify.
Is it a Solo 401(k)? How much did you wish to contribute?
The account does not specify "solo 401k" on it. How do I know if it is a Solo 401k? I contribute to it through my employer payroll deduction. My employer is a partnership and I and considered self-employed for tax purposes. The contribution is listed on the K1 statement line 13R. My contribution last year was $30000 which Turbotax is flagging as above the $27000 limit. I also had a $43500 Keogh contribution for a total $73500 contribution listed on K1 statement line 13R
The maximum contribution to a 401(k) plan for tax year 2023 is $22,500. There's a catch-up contribution of $7,500 for individuals aged 50 and over, making a total of $30,000.
For 2024, the maximum contribution is increased to $23,000 and the catch-up amount to $7,500, making a total of $30,500 for individuals aged 50 and over.
See this IRS document.
[Edited 3/20/24 | 5:33 AM PST]
Thanks for the reply, but you are INCORRECT. The catchup contribution in 2023 is $7500, not $6500, which is the limit for IRA contribution in 2023. So the total contribution limit is $30k for 2023.
My employer and the 401k/Keogh custodian Charles Schwab use the IRS tables to set the maximum contribution automatically.
Even if the limit was $29,000, for argument sake, why is turbotax flagging it as $27000?
This is a bug in the software, can we get someone to look at it?
I am having the exact same problem. My 2023 contribution to an individual 401(k) was $28,600. As you noted, the actual contribution limit for 2023 was $22,500 plus a catchup of $7,500 for those over 50 -- for a total of $30,000. But Turbotax flags the entry (in Smart Check) with this notation:
“Taxpayer elective deferrals to an individual 401k plan should not be greater than $27,000.”
Can someone at Turbotax respond and let us know what is causing this error?
I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:
TurboTax Online:
TurboTax Desktop/Download Versions:
*(If using a MAC, go to the menu at the top of the screen, select Help, then,Send Tax File to Agent”)
See the identical circumstances addresses in the following post:
This is apparently becoming a commonly reported problem now because partnerships are just now sending out Schedules K-1 for 2023.
Same problem as described by original post: TurboTax Home & Business error message of excess SE 401k contribution. Maximum allowed amount has been entered correctly. Please fix.
Edit: human error. Schedule C net earnings limit.
any estimate as to when this will be fixed?
Wondering if I should just file by mail instead of waiting for a Turbotax fix
Honestly, when can we get a fix for this? It's getting close to the filing deadline. This is crazy -- how can you not have accounted for the millions of us who have catch-up contributions?
The online version still has this mistake. I just worked on ours, and it stated there was an overpayment of $7,500, which was the allowed catch-up amount.
There is no such bug. You are confusing a 401(k) with an IRA. A 401(k) is not an IRA. Nothing about your 401(k) contributions is to be entered under Deductions & Credits. Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.