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My issue apparently has nothing to do with the SEP, because when I take that entirely out, it still shows me with a sizable reduction in my contribution availability. It has to be something elsewhere in the rest of the forms.

When I originally began contributing to a SEP years ago, it was based on a suggestion from a CPA as a means of having a “retirement account at work” like others do. Here are a couple of snips directly from the IRS site that shows the foundation for doing this:

Page 5 - Pub 560
A sole proprietor is an individual who owns an unincorporated business by himself or herself, including a single member limited liability company that is treated as a disregarded entity for tax purposes. For retirement plans, a sole proprietor is treated as both an employer and an employee.

Page 6 – Pub 560
A SEP-IRA cannot be a Roth IRA. Employer contributions to a SEP-IRA will not affect the amount an individual can contribute to a Roth or traditional IRA.

I was actually joking more than anything when I asked about going to jail, and was pretty sure that it had been OK all these years. What was mainly on my mind was wondering if things had changed this year, as opposed to prior years. Based on the fact that removing the SEP contribution in TaxAct didn’t really affect the overall problem, it doesn’t seem like that’s the case. The IRS has never had a problem with this in the years before, so maybe talking about it is not a bad thing.

Thank you for taking the time to answer me. And I'm sorry about making the joke.
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