2024 Solo 401(k) limit in Turbo Tax correct?

Forum|Forum|1 year ago
February 9, 2025
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In a nutshell my combined employee/employer contribution limit in a solo 401(k) should not allow me to exceed $69,000 for employee/employer contributions. I contributed $23,000 + $7,500 for a 50+ catchup and when I checked the "maximize" calculation box for my profit sharing amount, it's telling me I can contribute $38,850 (for a total of $69,350) instead of $38,000 (for a total of $69,000.)

I know the extra $350.00 is not a big difference, but was curious if this is a calculation bug in Turbo Taxbor if the there was another legit reason for the extra $350.00 to be added into the calculation.

Best answer by KeshaH

Since you are 50+ years old, the maximum that you can put into an account is $76,500, which is calculated as $30,500 elective contributions + $46,000 nonelective contribution. You've made the $30,500 elective contribution, now you can still contribute up to the $46,000 nonelective.

The $7,500 catch up contributions do not reduce the max nonelective contribution.

MinhT1

The maximum total contributions to a solo 401(k) in 2024 are $69,000 (plus a catch of $7,500 for age 50 or older).

If your income supports a total contribution of $69,350, then this number is possible.

Please read this IRS document for more information.

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motorgodAuthor

Thank you for answering. I looked at the IRS link you sent, and it said this:

The annual additions paid to a participant's account cannot exceed the lesser of:

100% of the participant's compensation, or
$69,000 ($76,500 including catch-up contributions) for 2024;

So if the max is $69,000, why is Turbo Tax letting me put in more for a solo 401(k) where I aready maxed out the employee contribution? I should be limited on the 25% profit sharing to the max of $69,000 after the employee contributions, correct?