topic SEP IRA Contributions in Retirement tax questions

SEP IRA Contributions

PVAg — Tue, 07 Apr 2020 19:23:54 GMT

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

Re: SEP IRA Contributions

BillM223 — Tue, 07 Apr 2020 19:39:56 GMT

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

Re: SEP IRA Contributions

PVAg — Tue, 07 Apr 2020 20:21:41 GMT

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

Re: SEP IRA Contributions

AmyC — Tue, 07 Apr 2020 22:51:32 GMT

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

Re: SEP IRA Contributions

Donald R Roberts iii — Fri, 02 Apr 2021 22:29:12 GMT

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.

Re: SEP IRA Contributions

Donald R Roberts iii — Fri, 02 Apr 2021 22:29:43 GMT

SEP IRA Contributions

Donald R Roberts iii — Fri, 02 Apr 2021 22:30:29 GMT

Re: SEP IRA Contributions

AnnetteB6 — Sat, 03 Apr 2021 12:22:01 GMT

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

Re: SEP IRA Contributions

dougmon1228 — Wed, 14 Apr 2021 18:06:51 GMT

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-contributions-in-turbotax-deluxe/01/2016547/highlight/false#M66981

Re: SEP IRA Contributions

dmertz — Wed, 14 Apr 2021 18:23:42 GMT

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.