have sep ira, am only employee
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TurboTax does the correct calculation. Since a SEP contribution is an employer contribution, a SEP contribution effectively reduces your compensation on which the maximum contribution is calculated, so a special calculation must be done. A 25% base rate results in a maximum SEP contribution of 20% of net earnings from self-employment being the maximum contribution by a self-employed individual.
See IRS Pub 560, Chapter 5: https://www.irs.gov/pub/irs-pdf/p560.pdf
TurboTax does the correct calculation. Since a SEP contribution is an employer contribution, a SEP contribution effectively reduces your compensation on which the maximum contribution is calculated, so a special calculation must be done. A 25% base rate results in a maximum SEP contribution of 20% of net earnings from self-employment being the maximum contribution by a self-employed individual.
See IRS Pub 560, Chapter 5: https://www.irs.gov/pub/irs-pdf/p560.pdf
The maximum SEP IRA contribution is the smaller of $55,000 or 25% of the participants compensation. Is it perhaps take the smaller amount?
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