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New Member
posted Jun 6, 2019 10:45:22 AM

Made 17,000 contribution to Sep IRA on Sub S Corp K-1 income of 198000, but not showing as a retirement contribution on 1040?

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Level 15
Jun 6, 2019 10:45:24 AM

You are not self-employed with respect to a retirement contribution, you are an employee of the S corporation.  Assuming that this is not a SARSEP established before 1997, the SEP contribution an employer contribution and is reportable and deductible only on the S corporation's tax return, not on your personal tax return.  The maximum SEP contribution that the S corporation can make on your behalf is the amount the S corporation paid to you in compensation (reported on your W-2 from the S corporation), and must be the same percentage of compensation as the SEP contributions made for other eligible employees of the S corporation, if any (up to the compensation limit for calculating SEP contributions).

If you do not have a separate sole proprietor business, there is no need for you to be using TurboTax Home & Business.  TurboTax Premier is sufficient to report your W-2 and Schedule K-1 from the S corporation.