a. I am aware of the limitation due to 1/2 the self-employment tax, I was making a rough estimate for illustration purposes. If the taxpayer's income is low, the IRA has a larger contribution limit, if the business profit is large(er), the SEP-IRA has a higher contribution limit.
b. The 20% limit for owners (instead of 25% limit for employees) was obscure for me to find. It is not given here SEP contribution limits but I did find it here Publication 560 although I had to control-F to find it.
c. Other options besides an SEP-IRA appear to include a self-employment 401(k) and a SIMPLE IRA.
https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people
@dmertz do you have any thoughts on pros or cons of various plans for a spousal 2-person LLC?
