https://ttlc.intuit.com/community/self-employed-group/discussion/re-sep-ira/01/2369100#M2619 <P>Hi&nbsp;<a href="https://ttlc.intuit.com/community/user/viewprofilepage/user-id/4619641">@jorgestambuk1</a>&nbsp;</P> <P>The maximum percentage is 25% of the employees compensation.</P> <P>Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:</P> <OL> <LI>25% of the employee's compensation, or</LI> <LI>$57,000 for 2020 and $58,000 for 2021 ($56,000 for 2019)</LI> </OL> <P>Note: Elective salary deferrals and catch-up contributions are not permitted in SEP plans.</P> <P>If you’ve contributed more than the annual limits to an employee’s SEP-IRA, find out how to<SPAN>&nbsp;</SPAN><A title="SEP Fix It Guide Contributions to the SEP IRA exceeded the maximum legal limits" href="https://www.irs.gov/retirement-plans/sep-fix-it-guide-contributions-to-the-sep-ira-exceeded-the-maximum-legal-limits" data-entity-substitution="canonical" data-entity-type="node" data-entity-uuid="d43eb8ca-54c6-48c6-b966-c72b80bb0a22" target="_blank">correct</A><SPAN>&nbsp;</SPAN>this mistake.</P> <P>Here is an IRS article related to this.</P> <P><A href="https://www.irs.gov/retirement-plans/plan-participant-employee/sep-contribution-limits-including-grandfathered-sarseps" target="_blank">https://www.irs.gov/retirement-plans/plan-participant-employee/sep-contribution-limits-including-grandfathered-sarseps</A></P> Wed, 27 Oct 2021 23:01:02 GMT Michele_H 2021-10-27T23:01:02Z https://ttlc.intuit.com/community/self-employed-group/discussion/sep-ira/01/2369094#M2618 <P>What is the maximum percentage contribution amount allowed on a self-employed IRA?</P> Wed, 27 Oct 2021 22:55:33 GMT https://ttlc.intuit.com/community/self-employed-group/discussion/sep-ira/01/2369094#M2618 jorgestambuk1 2021-10-27T22:55:33Z https://ttlc.intuit.com/community/self-employed-group/discussion/re-sep-ira/01/2369100#M2619 <P>Hi&nbsp;<a href="https://ttlc.intuit.com/community/user/viewprofilepage/user-id/4619641">@jorgestambuk1</a>&nbsp;</P> <P>The maximum percentage is 25% of the employees compensation.</P> <P>Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:</P> <OL> <LI>25% of the employee's compensation, or</LI> <LI>$57,000 for 2020 and $58,000 for 2021 ($56,000 for 2019)</LI> </OL> <P>Note: Elective salary deferrals and catch-up contributions are not permitted in SEP plans.</P> <P>If you’ve contributed more than the annual limits to an employee’s SEP-IRA, find out how to<SPAN>&nbsp;</SPAN><A title="SEP Fix It Guide Contributions to the SEP IRA exceeded the maximum legal limits" href="https://www.irs.gov/retirement-plans/sep-fix-it-guide-contributions-to-the-sep-ira-exceeded-the-maximum-legal-limits" data-entity-substitution="canonical" data-entity-type="node" data-entity-uuid="d43eb8ca-54c6-48c6-b966-c72b80bb0a22" target="_blank">correct</A><SPAN>&nbsp;</SPAN>this mistake.</P> <P>Here is an IRS article related to this.</P> <P><A href="https://www.irs.gov/retirement-plans/plan-participant-employee/sep-contribution-limits-including-grandfathered-sarseps" target="_blank">https://www.irs.gov/retirement-plans/plan-participant-employee/sep-contribution-limits-including-grandfathered-sarseps</A></P> Wed, 27 Oct 2021 23:01:02 GMT https://ttlc.intuit.com/community/self-employed-group/discussion/re-sep-ira/01/2369100#M2619 Michele_H 2021-10-27T23:01:02Z