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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 Replies 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?

Here's wishing you many Happy Returns
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

 


Here's wishing you many Happy Returns
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gclark
Level 1

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

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Accountant-Man
Level 12

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

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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?)


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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 12

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

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