I currently work full time at a employer as a W-2 employee with a 401K. I also run a small business LLC that I opened a SEP IRA for as well.
I maxed out my W-2 Employer 401k contribution of $23,000 for the 2024, and employer match is $4,344.
I am looking to max out my SEP-IRA as well. For 2024 I have $201, 354 in profits from my LLC.
Shouldn't I be able to deduct 25% of $201,354 = $50,388?
Instead it is telling me the maximum i can contribute is as follows: $62,731
401K - $23,000
SEP-IRA - $39,731
Where / How is this $62,731 being calculated from?
Employer match - $4344 - is not counted towards the total.
THANK YOU!!!
