SEP Contribution

[user17758475372]

Can I contribute to an SEP to reduce taxable income if I am collecting benefits from a pension plan, have W-2 earnings from a part-time job that also contributes to a qualified plan (Box 13 on W-2) and I am the sole member of an LLC earning 1099-NEC wages?  If so, in calculating how much a deduction would be reduced by, are only the W-2 and 1099-NEC wages counted?  The combined amount would be between 29 and 30k.  I am a single filer.  Thanks. 

[dmertz · Accepted solution]

The amount that you are eligible to contribute to a SEP IRA is determined only by your net earnings from self-employment.  Nothing about your W-2 job has any effect on that.

To determine your maximum permissible SEP contribution, in the self-employed retirement section mark the Maximize box for a SEP contribution.