Question

maximum IRA SEP contribution

Forum|Forum|5 years ago
May 11, 2021
2 replies
0 views

Your software is telling me my max SEP contribution is 17k but my net self employed income was 91k. I should be able to deposit 18k max, not 17k. What is going on?

TurboTax Home & Biz Windows

fanfare

Employee

once your income is set, TurboTax knows how to calculate your max contribution.

D

DavidD66

You have to adjust your self-employment income by subtracting half of your self-employment income and the expected contribution. When I calculate the maximum contribution for $91,000 of self-employment income I get $16,813. Use this worksheet to manually calculate your contribution: SEP IRA Contribution Worksheet

Rest assured that TurboTax is correctly calculating the maximum contribution.

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