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JKBoheme
Returning Member

Solo IRA Contributions

I'm looking for help to address a problem with the amounts for an employer contribution to a solo IRA.  I'm a self employed consultant (age 66) and want to maximize my contribution amounts.

I've entered the following amounts in TurboTax 2020 for an Individual 401k:

Elective Deferrals = 19,500

Catch up = 6,500

Employer Matching (Profit Sharing) = 37,000 (i.e., 63,000 -26,000)

 

When I check my the amount in the Self-employed Retirement under Less Common Business Situations, the total amount is only $53,437.  my 2019 amount was $60,258, which was also a bit lower that what I calculated.

Do you know why TT doesn't allow me to get the $63k limit?  Am I entering the info. in the wrong section of TT?  My total income from my consulting biz in 2020 was $173k.

Thanks, John

2 Replies

Solo IRA Contributions

employer matching is 20% of (se-income less the deductible portion of SE tax

so $173K - about $11K in se tax leaves  about $162k at 20% = $32400

 

look at the Keogh Sep worksheet or the actual computations

JKBoheme
Returning Member

Solo IRA Contributions

Ok, great.  I'll check that out.

Thanks for the help!

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