Calculate the maximum allowable SEP deduction

Enter
2
in the
Compute maximum allowable contribution
field to calculate the maximum allowable SEP deduction. UltraTax CS automatically calculates the maximum deduction using the lesser of 20 percent (.25/1.25) of net earnings from self-employment or $53,000. SEP plans aren't eligible for catch-up contributions or elective deferrals.
In lieu of calculating the maximum allowable contribution, use the
Total SEP contributions
field in the Keogh screen to enter known contributions to the plan. The same limitations apply for the purposes of calculating the SEP plan deduction.
To adjust the amount of self-employment earnings UltraTax CS uses to calculate the self-employment deduction, enter an adjustment in the
Adjustment to earned income
field in the Keogh screen. Negative entries are treated as subtractions.
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