MaryK4
Expert Alumni

Deductions & credits

The biggest advantage to a SEP IRA is higher contribution limits.  Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:

  1. 25% of the employee's compensation, or
  2. $61,000 for 2022 ($58,000 for 2021 and $57,000 for 2020)
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"