Entering Keogh, SEP, and Simple Plan contributions in ProSeries

This article will show you how to enter contributions to Keogh, SEP, and Simple Plans in ProSeries Basic and ProSeries Professional.

Follow these steps to enter a Keogh, SEP, or Simple contribution:

1. Open the client return.
2. Open the Keogh/SEP/SIMPLE Contribution Worksheet.
3. Enter the amount of the contribution on the line for the relevant plan.

The total maximum deduction will be calculated on Part V of the Keogh/SEP/SIMPLE Contribution Worksheet, and then the deduction will flow to Schedule 1, line 15.

How do I enter the client's contribution to the individual 401(K)?

Enter elective deferrals to an individual 401(K) on the Keogh/SEP/SIMPLE Worksheet, Part I, Lines 6 a-e, or select the check-box on 6(f) to calculate the maximum amount. The amount flows to Schedule 1, line 16. For more information, refer to IRS Pub. 560.

Making excess 401(K) contributions taxable on line 1

From the Tax Help for Line 9 of the Wages, Salaries, & Tips Worksheet:

"Enter other earned income received, such as excess salary deferrals, or earned income for which no Form W-2 was received."

To open the Wages, Salaries, & Tips Worksheet:

1. Press F6 on your keyboard to bring up Open Forms.
2. Type in "WA" and press Enter to open the Wages, Salaries, & Tips Worksheet.

Amounts entered on line 9 of the Wages, Salaries, & Tips Worksheet will be reported on Form 1040, line 1.

Starting in tax year 2022 the IRS has redesigned the 1040 line 1. Instead of a single line 1 there is now 1a through 1i showing the breakdown of earned income from various sources. This will not change your data entry or calculations but it will change how amounts are displayed on the 1040. See the 1040 instructions for more information.