Keogh SEP and SIMPLE Contribution Worksheet is doubling my net earnings! My error or TurboTax?
In Part III Step 1b of the contribution worksheet, the value for "Adjustment to Net Earnings" is showing the same amount as my Net Profit from self-employment, thereby doubling my total net profit which is incorrect. I am not sure why TurboTax is entering an adjustment in Part II table 1b for the same amount as my net profit.
I am contributing to a solo 401K plan with profit sharing at 25% and no employees or other income sources.
I have selected the "maximize my deduction" in the retirement contribution step-by-step section, and the result says I can contribute $64,500 to my solo 401K which I think is also wrong (too high). When I run the calculations in Excel using the IRS pub 560 Deduction Worksheet for Self-Employed and instructions, I get a much lower amount based on using only the net profit amount, not the double amount that TurboTax is coming up with.