You enter your SEP-IRA contributions in TurboTax Business by following these steps:
- In Federal Taxes, click on Deductions.
- Scroll down the page to Retirement plan contributions
- Click on Start and then respond to the questions accordingly.
As a way of background, as an employee you do not make contributions to a SEP IRA, the business does so on your behalf. It is a tax deduction to the business which is essentially a tax deduction for the owner of the business. The business can contribute 20% of business income (for sole proprietors, single-member LLCs and partnerships) or 25% of your salary (for corporations such as S Corps). Unlike traditional IRAs, there is no catch-up provisions since the business is making the contribution.
For SEP-IRAs there is the requirement that all eligible employees must have a pro-rata employer contribution. For example, if you make $50,000 and your assistant makes $20,000, if the business contributes 10% on your behalf it must do the same for your assistant.
@Woodie1225
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
