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Returning Member
posted Mar 27, 2022 3:08:42 AM

SEP-IRA contribution - is there a limit to the AGI for married filing jointly

Is it correct - if your AGI exceeds $66K for people who are married and filing jointly, the person who is self-employed cannot do a SEP-IRA contribution for 2021 tax year?

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1 Replies
Level 15
Mar 27, 2022 3:33:05 AM

AGI an filing status are not factors in determining the maximum SEP contribution.  The maximum SEP contribution is 20% of net earnings from self employment or $58,000 (for 2021), whichever is less.  Net earnings are net profit minus the deductible portion of self-employment taxes.

 

The $66,000 AGI threshold determines the deductibility of a regular traditional IRA contribution for someone filing single who is covered by a workplace retirement plan.  Contributing to a SEP-IRA makes you covered by a workplace retirement plan.