An SEP is a Simplified Employee Pension Plan. This is an easy way for the self-employed in particular to contribute far more to a retirement plan than they could to an IRA (although other employers can use it as well).
The contribution limits for an SEP in 2017 are
- 25% of the employee's compensation, or
- $54,000 for 2017
Once the money is in an SEP, it functions in a way similar to an IRA; indeed, many plans are called SEP-IRAs.
You enter the SEP contributions in the Business tab of TurboTax under "Less Common Business Situations" at the line called "Self-employed retirement". Note that this description is from TurboTax Home & Business (desktop); TurboTax Self-Employed may be laid out a little differently.
