Cannot enter correct maximum allowed SEP IRA

qingxiongli — Thu, 11 Feb 2021 20:58:47 GMT

Re: Cannot enter correct maximum allowed SEP IRA

AmeliesUncle — Thu, 11 Feb 2021 21:01:42 GMT

Can you give A LOT more details?

Can you enter anything? Is it an error message, and if so, what is the error? Are you sure you are calculating the maximum amount correctly?

Re: Cannot enter correct maximum allowed SEP IRA

DianeW777 — Thu, 11 Feb 2021 21:29:50 GMT

The deduction is not exactly the percentage you have chosen to use to multiply by your earnings as a deduction. If your contribution rate is 25% then the deduction rate for self-employed is 20%.

Deduction Limit for Contributions for Self-Employed:

If you contribute to your own SEP-IRA, you must make a special computation to figure your maximum deduction for these contributions. When figuring the deduction for contributions made to your own SEP-IRA, compensation is your net earnings from self-employment, which takes into account both the following deductions.

The deduction for the deductible part of your self-employment tax, or
The deduction for contributions to your own SEP-IRA.

See the image of the rate table below.
For more information you can use the worksheets and information in IRS Publication 560

Once your self-employment income is entered follow the steps here to enter your SEP-IRA:

In your return, type SEP IRA contributions (use the whole phrase) in the Search box (upper right) > Press Enter.
Select the Jump to link at the top of the search results.
This will take you to the Self-Employed Retirement Plans screen.
- If you get a message that Self-Employed Retirement Plans are only for self-employed individuals, this means that you have not entered any self-employed income.
TurboTax will ask you about whether you contributed to different types of retirement plans. Select Yes to Keogh, SEP, and SIMPLE Contributions.
On the Your Contributions screen, you’ll be able to input your SEP IRA contributions.

topic Cannot enter correct maximum allowed SEP IRA in Business & farm

Cannot enter correct maximum allowed SEP IRA

Re: Cannot enter correct maximum allowed SEP IRA

Re: Cannot enter correct maximum allowed SEP IRA