"the maximum contribution to retirement account (SEP-IRA) is calculated based on 25% of business profit"
That's an incorrect calculation. Because a SEP contribution is an employer contribution, teh SEP contribution itself reduces the amount of income to which the 25% base rate is applied, This means that the maximum SEP contribution is 20% of net earnings from self-employment. Net earnings from self employment is the amount reported with code A in box 14 of the Schedule K-1 (Form 1065) minus the deductible portion of self-employment taxes. TurboTax performs this correct calculation.
Unless the excess is returned to the employer (that would be you as partner in the partnership) by a return of excess contribution, the partnership is subject to a 10% excess contribution penalty reported on Form 5330 filed by the partnership by amending the partnership tax return.
https://www.irs.gov/retirement-plans/sep-fix-it-guide-contributions-to-the-sep-ira-exceeded-the-maxi...
