large IRA deposit

[DoninGA · Accepted solution]

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@OldCarGuy wrote:

i found it -- but it seems the anount she can contribute is a % of her income -- true??

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True.  Go to this IRS website - https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people

Simplified Employee Pension (SEP)

• Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $66,000 for 2023 ($61,000 for 2022, $58,000 for 2021, $57,000 for 2020 and $56,000 for 2019).

[dmertz]

"Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself)"

That's a really confusing way for the IRS do describe the maximum contribution.  Because your SEP contribution itself reduces the amount which gets multiplied by 25%, it works out to 20% of net earnings.

[DoninGA]

Thanks for clarifying that.  I saw your post right after I posted the IRS website info.

[OldCarGuy]

ok -- i've got the money showing in the SEP plan BUT somehow/somewhere i must have entered it twice

-- when calculating what i can contribute it says "already contributed" -- i must have tried another way to get the deduction but i cant find this entry -- any idea where i can look?  

[OldCarGuy]

i think i have it -- its just repeating the entry about to compair it to the calculated max based on earned income

[OldCarGuy]

With all the input i from the Turbo community have managed to get to the correct box for a SEP contribution

So I think i have discoved the problem -- Her "self employed" income only included her W2

not her 1099MISC or K1 income

is this excluded from the calculation of max contribution?

--if not, why is this income not showing up?

[dmertz]

Income reported on a W-2 is not income from self-employment.

[OldCarGuy]

of course --my bad!

I found my error -- thanks to all that helped me through this 

I will go back and mark your input as very helpfull

Jim