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Level 3
posted Jan 11, 2023 12:04:40 PM

Maximize 401k contributions

I checked the maximize contribution box for my 401k. I am wondering if that includes maximizing both the employer and employee contributions? Since I am self employed I think I can contribute as both, correct? If checking the maximize box only maximizes the employee part of the contribution, how do I calculate how much additional I can contribute as the employer? Thanks

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1 Best answer
Expert Alumni
Jan 11, 2023 2:22:33 PM

If you have already entered your business income/expenses,  the 'Maximize Contributions' box will tell you what you can contribute as both employer/employee, as it it taking into account your net business income.

 

However, if you contribute to any other retirement plan, you will need to calculate your employer contribution yourself.  Click this link for instructions if that applies to you. 

 

Click this link for more info on the Maximize Contributions tool. 

 

 

 

 

3 Replies
Expert Alumni
Jan 11, 2023 2:22:33 PM

If you have already entered your business income/expenses,  the 'Maximize Contributions' box will tell you what you can contribute as both employer/employee, as it it taking into account your net business income.

 

However, if you contribute to any other retirement plan, you will need to calculate your employer contribution yourself.  Click this link for instructions if that applies to you. 

 

Click this link for more info on the Maximize Contributions tool. 

 

 

 

 

Level 15
Jan 11, 2023 3:51:16 PM

TurboTax calculates the maximum combined employee and employer contributions, but does a very poor job of telling you how much of each. 

Level 3
Jan 11, 2023 3:56:47 PM

thanks. I don't need to know which is which, just that I contribute the true maximum.  So this works.