Folks:
Client is a consultant, operating through an S Corp. Client's SEP IRA contribution deduction is disallowed because she has no self-employment income. But she does--all the money coming from the K-1.
Maybe Lacerte is treating the income as passive? Is there something I have to do in the S Corp module (generating the K-1) to make the income count so that there can be an offset for teh retirement contributi9on? Or in the Individual model?
Thanks.
Micah
SEP IRA deduction would be taken on the S-Corp return, and based on the W-2 wages.
NOT on the F.1040
Ah. In that case, would you mind sharing how that is done? Is it just a deduction in Pensions and Profit-Sharing Plans (and if there are multiple people doing voluntary contributions, do you not distinguish how much each person contributed?)
A SEP is an employer-funded plan. All covered W-2 employees get the same percentage.
A SEP plan doesn't have an 'employee' deferral component. It is 100% paid/funded by the employer.
Listen to the 'taxgirlie' @PhoebeRoberts
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