The amount of your Saver's credit should be the same if you reported the same of amount of employee contributions when you entered each contribution amount - Look for form 8880 in your tax return and see what it shows. You only get the credit for the employee contribution - not for the employer contribution….. Double-check the amount that is reported as an employee vs. employer contributions.
The contributions you make to each employee’s SEP-IRA each year cannot exceed the lesser of:
- 25% of compensation, or
- $57,000 for 2020 ($56,000 for 2019 and subject to annual cost-of-living adjustments for later years)
These limits apply to contributions you make for your employees to all defined contribution plans, which includes SEPs. Compensation up to $285,000 in 2020 ($280,000 in 2019 and subject to cost-of-living adjustments for later years) of an employee’s compensation may be considered. If you're self-employed, use a special calculation to determine contributions for yourself (this is the portion that generates your personal Saver's Credit on Form 8880).
Contributions must be made in cash; you cannot contribute property.
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