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Deductions & credits
1. Look under prior year tax returns. Look at your business tax return.
Your SEP-IRA contribution goes to your broker and they send Form 5498. Your business claimed the deduction on the business tax return.
2. It depends. The IRS limits contributions to plan specifications or 100% of the employee's compensation, whichever is less.
Reference: Retirement contributions limit
Your ROTH plus your SEP IRA must be less than or equal to your employee compensation - not total income.
Remember, the more you subtract from your business for the SEP IRA, the lower your income.
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‎February 7, 2025
3:13 PM