topic I want to contribute to my single employee business to a SEP account. Tubrotax indicates there is only tax credit allowed for SIMPLE and Defined benfit plans. in Get your taxes done using TurboTax

I want to contribute to my single employee business to a SEP account. Tubrotax indicates there is only tax credit allowed for SIMPLE and Defined benfit plans.

cwgwyn — Tue, 04 Jun 2019 00:15:50 GMT

For 2018, the maximum SEP-IRA contribution cannot exceed...

IreneS — Tue, 04 Jun 2019 00:15:52 GMT

For 2018, the maximum SEP-IRA contribution cannot exceed the lessor of 25% of total compensation or $55,000. Please make sure you enter your contributions in the correct place in the program for self-employed retirement plans.

To do this, please follow these steps:

Click on Federal Taxes > Wages & Income
In the Business Items section, click the Start/Revisit box next to Business Deductions & Credits.
On the Business Deductions & Credits screen, click the Start/Update box next to Self-Employed Retirement Plans screen.
On the screen asking about Individual and Roth 401(k) Plans screen, click No.
On the screen, Keogh, SEP and SIMPLE Contributions, click the Yes box.
On the screen [Your name]'s contributions, if you want to calculate the maximum contribution, leave the SEP box blank, mark the Maximize box and click Continue. [If you know the amount you want to contribute, enter that in the box.]
On the Retirement Contributions screen, the maximum allowable contribution will show. You can click on the Review Contributions box to go back and enter the amount of actual contribution.

Re: For 2018, the maximum SEP-IRA contribution cannot exceed...

sk123 — Sat, 25 Apr 2020 02:13:45 GMT

I entered the SEP contribution under wages. Do I enter it again in the Deductions tab? under Traditional IRA's? Because when I do that, it is forcing me to contribute to the max Traditional amount of $6000 and informing me of penalties on the remaining. But that does not apply to SEP plans which are also Traditional. Please advise