topic Re: SEP maximum contribution over 50? in Retirement tax questions

SEP maximum contribution over 50?

MGtax2 — Mon, 23 Feb 2026 12:08:53 GMT

Under "Less Common Business Situations"

2022 return software is saying I have an excess contribution to my SEP/401k.

I am over 50, self employed as a consultant, and contributed $67,500 in 2022. Which is the maximum contribution plus the catch-up.

What's up?

Re: SEP maximum contribution over 50?

dmertz — Sun, 19 Feb 2023 17:55:29 GMT

Which is it, a SEP-IRA or a self-employed 401(k). It can't be both.

For 2022, the maximum SEP contribution would be $61,000 assuming you have $305,000 of net earnings from self-employment. Net earnings from self-employment are net profit minus the deductible portion of self-employment taxes.

To be able to contribute $67,500, the plan would have to be a self-employed 401(k) and your net profit would likely have to be at least about $215,000 of net profit.

Re: SEP maximum contribution over 50?

MGtax2 — Sun, 19 Feb 2023 20:26:12 GMT

Thank you dmertz,

Operator error here. The 401k contribution window didn't open, went directly to SEP, Keogh, etc.

All working fine, 401k, with catch up contributions and profit over $215,000 all working well.