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
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