How much can I contribute to a SEP-IRA through my LLC while having a 401K through a W-2 employer

Forum|Forum|1 year ago
March 12, 2025
2 replies
22 views

I currently work full time at a employer as a W-2 employee with a 401K. I also run a small business LLC that I opened a SEP IRA for as well.

I maxed out my W-2 Employer 401k contribution of $23,000 for the 2024, and employer match is $4,344.

I am looking to max out my SEP-IRA as well. For 2024 I have $201, 354 in profits from my LLC.

Shouldn't I be able to deduct 25% of $201,354 = $50,388?

Instead it is telling me the maximum i can contribute is as follows: $62,731

401K - $23,000

SEP-IRA - $39,731

Where / How is this $62,731 being calculated from?

Employer match - $4344 - is not counted towards the total.

THANK YOU!!!

TurboTax Home & Biz Windows

RobertB4444

Level 15

Your maximum combined contribution for your SEP and your 401k is $69,000 for 2024. The system seems to think you will have hit that limit if you contribute more than $39,731 to your SEP. Do you have any other IRA contributions that are listed anywhere else in the return?

@tungher

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

tungherAuthor

Level 2

i checked my form 1040 and the $23,000 was already subtracted from outside employer W-2 salary.

I think the $69,000 maximum is related to the self employed maximum?

I have now removed any self employed 401K contribution and it now says that I have to contribute $62,731 to the SEP-IRA. I am not sure how they got to this number bc 25% of $201,354 is $50,388?

tungherAuthor

Level 2

Just to confirm. One can contribute $23,000 through an outside employer sponsored 401k.

IN ADDITION one can contribute up to $69,000 through a self employed IRA

thank you as I am a noobie

dmertz

Level 15

Nothing about additions to the 401(k) has any bearing on the maximum SEP contribution from your LLC. SEP contributions are employer contributions ad employer contributions are unaffected by contributions at a different employer (as long as the two companies are not considered to be a controlled group that is required to be treated as a single employer for the purpose of a retirement plan).