Does TurboTax correctly calculate the maximum solo 401k contribution if you also have a W-2 employer 401k (have both 1099, W-2 income)?

Forum|Forum|1 year ago
March 10, 2025
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I have two jobs: one W-2 and one 1099. I have maxed out my employer and employee contributions with my W-2 job for 2024. For my 1099 job, on the "Keogh, SEP and SIMPLE Contribution Worksheet," page 3, part V - "Maximum Koegh/SEP/SIMPLE/401(k) Deductible Contribution" number 1 shows "Total maximum allowable deduction" is $33,624 and number 2 shows "Amount(s) transferred to Schedule 1, line 16" is $11,000. The $11,000 is what I put into my Solo 401k contributions for 2024, separate from my W-2 retirement bucket. When I ran the TurboTax program, my taxes went through and nothing was flagged. Did I over contribute or could I have put more? Thanks in advanced!

Best answer by dmertz

No, TurboTax has not been programmed with the ability to do this. If you make employee contributions to a different employer's plan, you cannot use the Maximize function for a solo 401(k) contribution. You'll have to manually calculate and enter the amount of your employee contribution to the solo 401(k), but you can use the Maximize function for a SEP IRA contribution to calculate the maximum permissible employer contribution to the solo 401(k).