Hi, I'm using TurboTax Home & Business 2019. I am self-employed with no employees and have entered my self-employment income. After deducting expenses, self-employment income shows up as $42,671. Last year I contributed $10,000 to my SEP, thinking this would fit within the 25% contribution limits. But when I click "maximize" to calculate the max. SEP contribution limits when completing my return in TurboTax, I'm told that $7931 is the max. I was able to contribute and that I need to remove the additional amount from my SEP in order to stay within the limits and avoid penalty. Anyone know why the max is lower than 25% of my income? Thanks in advance.
