I am confused. Husband is a sole proprietor LLC. We both contributed $7500 to our Traditional IRA accounts so we can save $3300 on our taxes. But now I want to see how much he can contribute to a SEP from his business also. I am filing an extension so listed a safe number of $50,000 as his net business income. TT is saying his max allowed to a SEP is $49,721, then deducting his $7500 from that and saying he can contribute $42,221 to a SEP.
TT is telling me I have to withdraw my $7500 from my traditional IRA (so basically I can't do any IRA contribution at all for 2023?) I do not have a job (but work for free on his business) so I know I can't do a SEP, but can't I do a max Traditional IRA as a spouse?
And from reading IRS publications, shouldn't the max contribution for a SEP on my husband be 25% of his $50,000 net profit ($12,500 and not the $42,221 it is telling him)?
So TT is really messing things up the way I see it as I, as a spouse, should be able to make a $7500 Traditional IRA contribution. And my husband should be able to make a $7500 Traditional IRA contribution and a $12,500 SEP contribution. He is 72 and I am 65 if our ages play into any of this
