According to the IRS website.
Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:
- 25% of the employee's compensation,
- or$66,000 for 2023 ($61,000 for 2022, $58,000 for 2021 and $57,000 for 2020)
Also, Annual compensation limit. You can't consider the part of an employee's compensation over $305,000 when fig- uring your contribution limit for that employee. However, $61,000 is the maximum contribution for an eligible em- ployee. These limits increase to $330,000 and $66,000, respectively, in 2023.
But that is okay BUT the software is not allowing the contribution to be made due to a MAGI of $500,000 which is from the sale of the business (Capital gains). I have adjusted numbers so that the 2 of us (Partners) get paid a 1099-NEC amount so we can make a SEP/IRA contribution. Software says NO!
