lisaasa
New Member

TT calculates a maximum SEP limit that is less than 25% of my Self Employed Net Income. Why?

I'm using the Net Income amount reported in "Wages and Income" -->"Business Items"--> "Business Income and Expenses" (it shows the number net based on my 1099 Income - Business Expenses), then multiplying that by 25%. TT calculated a maximum SEP contribution as a number that is only 18.6% of my Net Income (in section "Wages and Income"--> "Business Items" --> "Business Deductions and Credits" --> "Self Employed Retirement Plans").  How is it calculating my maximum SEP? I did max out my Roth IRA. Does that impact it?