topic Re: maximum IRA SEP contribution in Retirement tax questions

maximum IRA SEP contribution

jchesebro — Tue, 11 May 2021 01:23:04 GMT

Your software is telling me my max SEP contribution is 17k but my net self employed income was 91k. I should be able to deposit 18k max, not 17k. What is going on?

Re: maximum IRA SEP contribution

fanfare — Tue, 11 May 2021 01:50:45 GMT

once your income is set, TurboTax knows how to calculate your max contribution.

Re: maximum IRA SEP contribution

DavidD66 — Tue, 11 May 2021 02:00:33 GMT

You have to adjust your self-employment income by subtracting half of your self-employment income and the expected contribution. When I calculate the maximum contribution for $91,000 of self-employment income I get $16,813. Use this worksheet to manually calculate your contribution: SEP IRA Contribution Worksheet

Rest assured that TurboTax is correctly calculating the maximum contribution.