dmertz
Level 15

Retirement tax questions

$2,200 is not the correct amount of SE tax for $15,000, so your numbers are inconsistent.  Either your net profit is more than $15,000 or your SE tax is less than $2,200.  Without an accurate number for your net profit, it's not possible to accurately calculate the maximum SEP contribution. or the total amount that you and your wife are eligible to contribute to regular IRAs.

 

If your net profit actually was $15,000, your SE tax would be $2,120 your net earnings would be ($15,000 - $2,120 / 2) = $13,940.  Your maximum SEP contribution would be 20% of $13,940  = $2,788.  The amount of compensation remaining to support regular traditional or Roth IRA contributions would be $13,940 - $2,788 = $11,152.  If you contribute the maximum $7,000 to your regular IRA, that would leave $4,152 that your wife could contribute to an IRA.

 

Of course the numbers will be a bit different based on your actual net profit.

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