dmertz
Level 15

Retirement tax questions

Her SEP contribution is entirely independent of the 401(k) contributions.  One does not affect the other.

 

Her SEP contribution is limited to 20% of net earnings from self-employment.  Net earnings are net profit minus the deductible portion of self-employment taxes.  Marking the Maximize box for a SEP contribution will cause TurboTax to automatically calculate this.  Make sure that there was no experimentation with individual 401(k) entries.  If the result on Schedule 1 line 16 is not the correct SEP contribution, try deleting the Keogh, SEP and SIMPLE Contribution Worksheet and revisiting the self-employed retirement section to re-mark the Maximize box for a SEP plan.

 

Make sure that the only entries made related to the 401(k) are the entries in box 12 of TurboTax's W-2 form, code D for elective deferrals, code AA for Roth contributions.  Enter these nowhere else.