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New Member
posted May 10, 2021 6:23:04 PM

maximum IRA SEP contribution

Your software is telling me my max  SEP contribution is  17k  but my net self employed income was  91k.   I should be able to deposit  18k max,  not  17k.    What is going on?

0 2 576
2 Replies
Level 15
May 10, 2021 6:50:45 PM

once your income is set, TurboTax knows how to calculate your max contribution.

Expert Alumni
May 10, 2021 7:00:33 PM

You have to adjust your self-employment income by subtracting half of your self-employment income and the expected contribution.  When I calculate the maximum contribution for $91,000 of self-employment income I get $16,813.  Use this worksheet to manually calculate your contribution:  SEP IRA Contribution Worksheet

 

Rest assured that TurboTax is correctly calculating the maximum contribution.