SEP IRA Contributions

[PVAg]

I'm filing married joint return.  Both of us are retired and receiving pension income, but we of course no longer work there. I am continuing to work as a private consultant.   I will be putting $13,000 into a SEP IRA based on my income from private consulting.  Can my wife and I both - ALSO put money into a SEP IRA or Roth IRA if our income is over $123,000 or whatever the max income limit is?  Turbo Tax states that we cannot based on our income because we are covered by a pension/retirement plan at work - but we are no longer working at those jobs where we were covered.  Its confusing to me?

PVAg 

[BillM223 · Accepted solution]

Did either of you receive a W-2 in 2019 with "retirement plan" in box 13 checked?

[PVAg]

Thanks for the reply - No neither of us received a W-2.  We only received a 1099-R each.

[AmyC]

Income less than $193,000 does not limit ROTH contributions for MFJ. A SEP IRA is a retirement plan for the self employed. You can have your SEP IRA and you can each have a ROTH IRA, subject to income limitations. It is viewed as an employee with a 401k and a ROTH. Both of you have retirement at work and a ROTH on the personal level.

A SEP IRA follow the rules for a traditional IRA. Please go through the IRA section again and verify that you are making ROTH contributions in addition to the SEP.

There may be something we are missing without seeing your return and all of your information.

For complete details on all things retirement, see the IRS Retirement Center.

Which includes:

Contribution limits

IRA Contribution Limits

2019 - Amount of Roth IRA Contributions You Can Make for 2019

SEPs

[Donald R Roberts iii]

Getting frustrating.  My wife is an independent contractor.  This year she received 1099-NEC from everyone she contracted from.  Ever month she contributed money into  a SEP account.  How do I get to the TurboTax form to enter her contribution.  Please be specific in your answer.

[Donald R Roberts iii]

no

[Donald R Roberts iii]

no

[AnnetteB6]

If you are using TurboTax Online Self-Employed, you can find the self-employed retirement contributions section by going to Federal > Income and Expenses and then scrolling down to the Other Business Situations section.  Click Start or Update beside Self-Employed Retirement Plans.

If you are using TurboTax CD/downloaded Home and Business version, start by going to the Business tab at the top of the screen.  Then, scroll down to Less Common Business Situations and click Start or Update beside Self-Employed Retirement.

For more information, see the following TurboTax article:

Where do I enter my SEP IRA contributions?

@Donald R Roberts iii

[dougmon1228]

Can you enter SEP-IRA contributions in Turbotax Deluxe CD/Download version?

According to this post you can, but when I click on Update for Retirement Savings Contribution it just returns me to the Deductions and Credits tab. 

@https://ttlc.intuit.com/community/business-taxes/discussion/re-can-i-enter-self-employed-sep-ira-con...

[dmertz]

The Retirement Savings Contributions Credit section has nothing to do with entering a SEP contribution.  You can only visit the Retirement Savings Contributions Credit section after entering the SEP contribution or some other retirement contribution.

Enter the SEP contributions in the self-employed retirement section of the Business section.