Hi, i already max out my Roth IRA contribution. Can i also max out my SEP IRA contribution whic is 25% of my net income?

[macuser_22]

The contribution limits on a Roth IRA and a SEP are not dependent on each other - they are separate.

[Bsch4477]

Yes. The contribution to your Roth doesn’t affect your contribution to your SEP IRA. 

[dmertz · Accepted solution]

Yes, you can make a SEP contribution (you have until July 15, 2020 to do so for 2019, or, if you request a filing extension, you have until October 15, 2020), but the maximum permissible SEP contribution is not 25% of net profit.  The maximum permissible contribution from self-employment income is 20% of net earnings where net earnings are your net profit minus the deductible portion of self-employment taxes.  Also note that if you make a SEP contribution, the amount of net earnings that remain after subtracting the amount of your SEP contribution must be sufficient to cover your Roth IRA contribution, otherwise some of your Roth IRA contribution will become an excess contribution.

[entrep10bill]

Thank you for your reply . I really appreciate it.