I matched my employee's elective SEP IRA contributions for the first time in 2025. How do I report it? I'm using TurboTax Business.

[noteworthypuppets]

I am an employer. I matched my employee's elective SEP IRA contributions for the first time in 2025. How do I report it? I'm using TurboTax Business.

[DavidD66]

Employees are not allowed to make elective contributions to a SEP IRA.  Only employers can contribute.  Employers have to contribute the same percentage of compensation for all eligible employees, including owners (partners, shareholders, members).

If you are filing an 1120-S for an S-Corp, contributions are made by the business based on W-2 compensation, not on S Corp profits or shareholder distributions, and are deductible on Form 1120-S, Line 17.  You report the SEP IRA contributions by going to:

• Federal Taxes
• Deductions
• Compensation and Benefits
• Select "Retirement plan contributions"
• Indicate you have already Already contributed...
• Enter total contributions

If you are filing Form 1065 for a partnership,  The percentage of compensation contributed must be the same for all eligible participants, including the partners.      

To Report SEP IRA contributions for Employees in TurboTax, go to:

• Federal Taxes
• Deductions
• Employee compensation and benefits
• Retirement

Note:  Partner contributions and employee contributions to a SEP are treated differently and entered in different places.

[noteworthypuppets]

Hello DavidD66.

Thanks for responding.  I think (remember, this is uncharted territory for me) I may have used the wrong terminology when I said "contributions" rather than "deferrals".  My employee has had funds deducted from their wages to go into their SEP IRA.  This amount is reported on their W-2 in Box 12 with code letter "F. Elective deferrals under a section 408(k)(6) salary reduction SEP"   For the first time, we, as the employer, matched those contributions.  

Once you mentioned the line for an 1120-S, I looked up the same term on the form we use as a C Corporation, Form 1120 and I found "Pension, profit-sharing, etc., plans"  

This is great.  Thank you very much.  I think this answers my initial question.  However, the follow up question is... is that it?  I, as the employer can just declare the total employer amount paid (as matching contributions) towards all employees SEP IRA on line 23 and don't have do an additional form (or something) for each individual employee?  Thank you for your patience.