SEP Contribution

Forum|Forum|2 months ago
April 10, 2026
1 reply
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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.

Best answer by dmertz

Expert Reviewed

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.

dmertzAnswer

Level 15

Expert Reviewed

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.