1040-US: Including an elective deferral in the calculation of a self-employment retirement plan deduction

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Question

How do I include an elective deferral in the calculation of a self-employment retirement plan deduction?

Answer

If contributions are made on behalf of an employee in the form of an elective deferral, mark the Include elective deferral in computing maximum allowable contribution field in Screen Keogh. The tax application assumes the maximum elective deferral amount of $18,000 for 2017 when calculating the allowable contribution. The tax application automatically reduces the $18,000 maximum by any contributions entered in Screen W2 or in a separate Keogh screen made on behalf of the same individual.

Note: If you enter 4 in the Compute maximum allowable contribution field, The tax application automatically marks the Include elective deferral in computing maximum allowable contribution field.

Related topic: Keogh, SEP, and SIMPLE contributions FAQs (1040)

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