TurboTax will limit your self-employed retirement deduction to the amount that you are permitted to contribute, based on your net earnings from self-employment. Amounts contributed in excess of the permitted amount are subject to a 20% penalty on Form 5330. TurboTax does not support Form 5330.
Review the calculations on TurboTax's Keogh, SEP and SIMPLE Contribution Worksheet to see the maximum permissible contribution.
