topic Retirement contribution allocation in Self employed

Retirement contribution allocation

renda000 — Mon, 17 Mar 2025 20:48:29 GMT

I am a single owner of LLC. I contribute $10k into my SEP. In “Retirement contribution allocation”, it asks the amount of the contribution that is attributable to my business? I am confused on the meaning of “attributable to my business”. Isn't obvious that $10k can be “attributable" to my business if I want? Now, it is contributed to my own SEP, but not to my LLC. Should I input $10k or $0?

Re: Retirement contribution allocation

MinhT1 — Mon, 17 Mar 2025 21:20:33 GMT

The contribution to your SEP account of $10k is attributable to your business. It is reported on the tax return of the LLC as a business expense.

The $10k is paid by the LLC and credited to your SEP account as the owner of the LLC.

Re: Retirement contribution allocation

renda000 — Wed, 19 Mar 2025 14:43:12 GMT

Thanks for the response. I has a simple member LLC, and do not file a separate tax return of the LLC. In this case, should I enter $0 or $10k for the question on "Retirement contribution allocation"?

Re: Retirement contribution allocation

AmyC — Sat, 22 Mar 2025 23:17:52 GMT

The business contributed the $10,000 and you get the write off on sch 1. Double check your forms show $10,000 is showing up on sch 1, line 16.

Plan contributions for a self-employed individual are deducted on Form 1040, Schedule 1 (on the line for self-employed SEP, SIMPLE, and qualified plans) and not on the Schedule C. If you made the deduction on Schedule C, or made and deducted more than your allowed plan contribution for yourself, you must amend your ...

from the IRS Calculating your own retirement plan contribution and deduction

@renda000