SEP IRA Contribution Problem With Allocation

Forum|Forum|4 years ago
April 19, 2022
1 reply
3 views

Hi,

I have 2 business income K-1s
1) LLC 1065
2) S-Corp 1120S

I have a SEP IRA contribution and when I added it in Turbo Tax, it is being allocated to the wrong business, when I print my return I see it added to the K1-1065 LLC instead of the S-Corp 1120S where it belongs?

Is there a way to fix this?

TurboTax Self Employed Online

dmertz

Level 15

A SEP contribution made by the S-corp goes on the S-corp's tax return, not on your individual tax return.

genuwine4532Author

Level 2

No not in all cases, in my case its my choice, I am owner and employee, I can and always do put it on my personal.

Anyway, I already fixed any issues with my Turbo Tax, so I am closing this topic.

dmertz

Level 15

With respect to the S corp there is no choice. You are not the employer, the S corp is the employer and the SEP contribution is an employer contribution. All SEP contributions made with respect to the S corp must be reported on the S-corp's tax return and are based on the wages reported on the W-2 issued to you by the S corp.