New
Retirement plan contribution limit
When client had maximum deferral on W2, it's helpful for Lacerte to give warning about excess contribution amount. For example, client deferred $30k from W2 wages, and had $270k of net business income. When Lacerte calculate the maximum contribution for the solo 401k plan, it showed $52k as deductible contribution. This resulted in $16k excess contribution because for tax year 2023, the annual limit was $66k.
Thanks.
