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Entering SEP, SIMPLE and qualified plan contributions in Lacerte

SOLVEDby IntuitLacerte Tax16Updated July 14, 2022

Follow these steps to enter or change a plan contribution rate for SEP, SIMPLE or qualified plans:

  1. Go to Screen 24, Adjustments to Income.
  2. Scroll to the SEP, SIMPLE, Qualified Plans section.
  3. Enter the applicable fields to indicate the maximum:
    • Profit-sharing (25%/1.25) (1=maximum)
    • Money purchase (25%/1.25) (1=maximum)
    • Defined benefit (no limitations)
    • Self-Employed SEP (25%/1.25) (1=maximum)

Enter the desired rate in the Plan Contribution rate (.xxxx) [O] field.

Please refer to this resource for information about each input.

Commonly asked questions about SEP, SIMPLE and qualified plans

Lacerte will calculate the maximum deduction based on the rate on the SEP, SIMPLE, Qualified Plans worksheet.

  1. Go to Screen 24, Adjustments.
  2. Scroll down to the SEP, SIMPLE, Qualified Plans section.
  3. Make sure the entry in Self-employed SEP (25%/1.25) (1=maximum) is entered under the correct Taxpayer or Spouse column.
  4. Check to ensure that the self-employment income has flowed to the desired form.

Statutory employee income is not combined with self-employment income. If you have gross receipts that should be self-employed income you should create a separate Schedule C on Screen 16, Business Income (not linked to the wages entered on Screen 10, Wages).  

When multiple Schedule C activities have been entered in Screen 16, Business Income, and the maximum contribution has been indicated in Screen 24, Adjustments to Income, Lacerte will include income from both activities when calculating the deduction on Form 1040, line 28.

Refer to Pub 560 for more information about SEP, SIMPLE and qualified plan contributions.

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