As self-employed, you are your own employer. A SEP plan is an employer-provided retirement plan, so your contributions to a SEP plan established under your sole proprietorship constitute active participation in an employer-provided retirement plan.
For the self-employed, SEP contributions for 2022 are limited to $61,000 or 20% of net earnings, whichever is less. Net earnings are net profit minus the deductible portion of self-employment taxes. ($66,000 is the limit for SEP contributions from your 2023 net earnings.)
