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bschelstrate
New Member

If my net Schedule C income is around $10,000, why does Turbo Tax say I can contribute $9,000 to my sep ira? I thought the limit was 25%.

 
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dmertz
Level 15

If my net Schedule C income is around $10,000, why does Turbo Tax say I can contribute $9,000 to my sep ira? I thought the limit was 25%.

This suggests that you mistakenly told TurboTax to calculate the maximum 401(k) contribution.  Either delete the Keogh, SEP and SIMPLE Contribution Worksheet and then re-mark the SEP Maximize box or tell TurboTax that you made an individual 401(k) contribution and unmark the Maximize box for an individual 401(k).

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2 Replies
dmertz
Level 15

If my net Schedule C income is around $10,000, why does Turbo Tax say I can contribute $9,000 to my sep ira? I thought the limit was 25%.

This suggests that you mistakenly told TurboTax to calculate the maximum 401(k) contribution.  Either delete the Keogh, SEP and SIMPLE Contribution Worksheet and then re-mark the SEP Maximize box or tell TurboTax that you made an individual 401(k) contribution and unmark the Maximize box for an individual 401(k).

bschelstrate
New Member

If my net Schedule C income is around $10,000, why does Turbo Tax say I can contribute $9,000 to my sep ira? I thought the limit was 25%.

Thanks!  This fixed the problem.  I just clicked on "Maximize" in the wrong place!

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