TT H&B desktop not figuring SEP max contribution correctly

Cindy62707 — Wed, 11 Feb 2026 07:35:42 GMT

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

Re: TT H&B desktop not figuring SEP max contribution correctly

dmertz — Tue, 16 Apr 2024 03:35:06 GMT

Somehow you have entered far more than $50,000 of net profit from self-employment.

Re: TT H&B desktop not figuring SEP max contribution correctly

Cindy62707 — Sat, 20 Apr 2024 20:07:26 GMT

I put in an even 50,000 as the estimated income from his business . And it still doesn’t explain why it is telling me I have to withdraw my $7500 traditional IRA

topic Re: TT H&B desktop not figuring SEP max contribution correctly in Retirement tax questions

TT H&B desktop not figuring SEP max contribution correctly

Re: TT H&B desktop not figuring SEP max contribution correctly

Re: TT H&B desktop not figuring SEP max contribution correctly