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How do I enter a SEP Contribution for the sole shareholder of a S Corporation? Shareholder has received a W2 and has a SEP

gclark
Level 1
 
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10 Comments 10
abctax55
Level 15

I enter it on Screen 15, under pension, profit-sharing plans (code 29 if you speak batch entry).

IF you are doing the W-2, make sure the retirement plan box is checked.

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George4Tacks
Level 15
Is the expectation to calculate the SEP based upon the W-2? Is the expectation to calculate the SEP based upon the K-1 figures, or distribution?

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abctax55
Level 15

I do think we need a bit more info from @gclark .  

Perhaps s/he is actually asking how to enter info in the individual module rather than the S-Corp module.

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George4Tacks
Level 15

@gclark Could you add a bit more information. Are you trying to create a SEP deduction on the 1040 for the shareholder? Do they any other SE income?

https://www.irs.gov/retirement-plans/retirement-plan-faqs-regarding-contributions-s-corporation

 


Answers are easy. Questions are hard!
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gclark
Level 1

Trying to enter SEP contribution on individual module.  Want to maximize contribution

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gclark
Level 1

No other self employment income - S Corp and W2  only

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abctax55
Level 15

The SEPP contribution is done at the S-Corp level, and is based on the W-2 wages.

It isn't done/taken on the F 1040 for the S-Corp W-2 wages, OR the distributions, OR the K-1 flow thru income.

(And where have you been for the last year, since you originally posted the question?)

HumanKind... Be Both
qbteachmt
Level 15

"(And where have you been for the last year, since you originally posted the question?)"

I've reported this, similar to what I noticed last week, in Community Suggestions. When you click the username, that listing shows everything is from 2021.

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Accountant-Man
Level 13

That is not allowed. The SEP based on his wages is only allowed on the 1120S return.

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Accountant-Man
Level 13

Does the company have other employees that are not "covered" in his fictional SEP?

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