Can I enter Self-Employed SEP IRA contributions in TurboTax Deluxe?

[cornfarmer1]

I read the article about SEP IRA contributions, and it says I should be getting a "Jump To" option for Self-Employed Retirement options when I search for SEP IRA.  I get that option for another search, but nothing on SEP IRA.  Am I doing something wrong?  Does Deluxe not cover SEP contributions?  

Thanks. 

[HelenC12]

No, TurboTax Online Deluxe does not support SEP IRA's. 

Before you enter your SEP IRA contributions, first make sure you've entered self-employed income. This allows us to calculate the maximum amount you're allowed to contribute to your SEP IRA.

You may use the following TurboTax products to report your business income and related SEP IRA:

• If you're using the TurboTax Online version, you may use TurboTax Self-Employed, and TurboTax Live Self-Employed.
• If you're using the TurboTax CD\Download version, you may use Deluxe, Premier, or Home & Business. 
• See What are the advantages of the TurboTax CD/Download software over the Online version?

Note: A Simplified Employee Pension (SEP) or (SEP-IRA) provides business owners with a simplified method to contribute toward their employees' retirement as well as their own.

Contributions are made to an IRA set up for each plan participant and cannot exceed the lesser of:

• 25% of compensation paid during the year
• $57,000 for 2020 ($56,000 for 2019)

Investment, distribution, and rollover rules are the same as traditional IRAs.

[cornfarmer1]

Thanks for the reply. I'm not sure which box I checked... But I'm using the downloaded desktop version of deluxe, not the online version. Does anybody know for sure whether desktop download deluxe will allow for SEP IRA? 

Thanks. 

[VolvoGirl]

Yes.  All the Desktop programs have the same forms.  You can use Deluxe for everything.  Not sure where you enter it.  You should be able to search for it and get a JUMP TO link.  I'll check my program.

[cornfarmer1]

Found it!  I neglected to search for "SEP IRA Contributions" (left out the last word).  Incidentally, searching for "Self-Employed Retirement Plans" works, too.  

And it shows up under "Business Items" > "Business Deductions and Credits" on the Wages and Income tab.  

Thanks, all, for the help.

[VolvoGirl]

Thanks for letting me know how and where you found it.

[dougmon1228]

I'm using TurboTax CD\Download Deluxe version, and when I click on "Update" for  "Retirement Savings Contribution Credit, it just returns me to the Deductions and Credits tab. When I do "Visit All" under "Retirement and Investments", it doesn't allow me the option to enter in my SEP-IRA contribution.

Also, in years past, the Deluxe version would maximize the SEP-IRA contribution amount. If you are reducing the functionality of the versions, you should tell what you are reducing each year. I'm a long time user of Turbotax and I certainly don't appreciate being treated like this.

[DaveF1006]

The easiest way is to:

1. Log into your Turbo Tax 
2. Pick up where you left off, if using the online version.
3. Click the search bar with the magnifying glass at the top and type sep accounts in the search box.
4. Press continue
5. Click the link that says jump to sep accounts.

[meyerra]

Important NOTE: Enter SEP IRA Contibutions --- that last "s" is critical. Without it, you don't get the jump to. Do these guys even know who to write code with regular expression tests on input??

[GapMapper]

Turbo Tax limits SEP IRA contributions, so no they dont really do it .  They treat it like a traditional IRA and limit you to $6500 contribution (or contributionS).  Its annoying and Im not sure what to do.  As a self employed person I need my total contribution (Im allowed 25% of my income) to be counted!  On the horribly clunky chat function then on the phone with TT "expert" for hours and still no resolution.   Cummon Turbo tax Im paying you as much as I would a CPA at this point!  DEAL WITH THIS SEP IRA ISSUE!!!

[BrittanyS]

Did you enter the SEP IRA through the self-employment option?  When I run a test I am not receiving a limit to $6,500.  Follow these steps to check the entry of your self-employed SEP IRA:

1. Click Wage and Income
2. Scroll down to Other Business Situations, Click Show More
3. Click Start/Revisit next to Self-Employment Retirement Plans
4. Answer no for "Did you contribute to an Individual or Roth 401(k) plan?
5. Click Yes for the next screen.  
6. Enter the amount you contributed or will contribute for your SEP Plan and click Maximize.

If you are still seeing a limitation please respond back to this thread.

@GapMapper 

[GapMapper]

No that does not work .  In the window you suggest...self employment retirement plans there is no place for SEP IRA which is not a 401k.  I tried to put it under the "employer contribution" area, and then again in the SEP (because Im self employed I am both the employer and employee)  both with adjusting my income and not (which is an option in the SEP IRA area).  Ive done it with "maximize" and without. I was just trying everything to trick the system into making it work.  It does not.  I have talked to four Turbo Tax "experts" over the last 3 days and nobody can figure it out.   TT is calculating strange numbers.  So there is some trick or else there isnt, and its impossible with TT.  Not sure what to do!

[AliciaP1]

It looks like you're answering yes to the wrong screen.  When you get to the Did you contribute to an Individual or Roth 401(k) plan? screen and click No, the next screen asks if you made SEP contributions (or Keogh or SIMPLE).  When you click YES you get the following screen:

@GapMapper 

[GapMapper]

yes and it calculates the wrong amount.  It SHOULD just take off the 25% (which is the amount I put into the SEP) off my taxable income, but it does some very strange calculations that make no sense at all.  Ive been on the phone now for 5 hours with 4 different people and its infuriating.  Thanks for your time but it isnt working.

[daisy20222023]

I have two businesses. The same SEP IRA contribution amount always go to both companies. How to associate it with one specific business in TurboTax desktop. Thank you!