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Calculating 3% Employer Contribution to Simple IRA for Self-Employed Person

I am self-employed. What is the formula for calculating the 3% employer contribution to my Simple IRA? If someone could tell me which specific lines to use from which specific 1040 schedules so I can just plug in numbers, I would be very grateful. Thank you!

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ThomasM125
Expert Alumni

Calculating 3% Employer Contribution to Simple IRA for Self-Employed Person

You as the employer are required to match each employee's salary reduction contribution up to 3% of the employee's wages. You can make employer contributions instead and then you don't need to abide by the 3% rule. Here is what is says in an IRS article:  SIMPLE IRA contributions

 

You enter the SIMPLE IRA contribution in TurboTax in the business section on the screen that says Let's gather your business info, choose the Self-employed Retirement entry:

 

 

Later, you will come to a screen where you can enter your SIMPLE IRA contribution:

 

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