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Solo 401k contributions.. I entered $23,000 for my personal contribution and $46,000 for the business contribution. TurboTax calcs $46,190 not $69,000. What am I missing?

Forum|Forum|1 year ago
April 6, 2025
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These are the max allowable amounts for 2024 per the IRS.

Best answer by dmertz

Assuming no other employment where you pay Social Security tax, an employer contribution of more than $23,190 to your solo 401(k) would require net profit from self-employment of more than $124,765. Are you saying that your net profit is more than that?

M

MinhT1

The limit of $69,000 is the upper limit.

The solo 401(k) is also limited by your net earnings from self-employment after deducting both:

one-half of your self-employment tax, and
contributions for yourself.

The contribution limits of a solo 401(k) are given in this IRS document.

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D

davidaustingtAuthor

My situation is eligible for the upper limit. TurboTax is limiting incorrectly.

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dmertzAnswer

Assuming no other employment where you pay Social Security tax, an employer contribution of more than $23,190 to your solo 401(k) would require net profit from self-employment of more than $124,765. Are you saying that your net profit is more than that?