I'm a sole proprietor who claims no business expenses (consultant who works from home) so my net business income is just the sum of all my 1099-MISC's. If I want to create an SEP IRA for tax year 2016, does the contribution need to come from a solely business account? Or as a sole proprietor who made $45,000 am I simply eligible to make an SEP IRA contribution equal to 20% of that salary (i.e. $9000)? I'm married filing jointly and we're trying to reduce our taxable income for 2016 at the last minute, but if I need to clearly delineate the contribution as an "employer contribution to SEP IRA from a business account" it seems like a SIMPLE IRA may be simpler way to reduce our taxable income at my level of income, right?
