I've never had a SEP IRA before. I read once place that I can contribute up to 25% of my modified adjusted gross income for 2022 to a SEP RIA. Another place, I read it's only 20%. I am not sure whether I can contribute 25% as my own employer, and another 20% as my own employee, or what. What percentage actually applies to me? Percentage of what? MAGI?
You can contribute up to 25%.
When figuring the contribution for your own SEP-IRA, compensation is your net earnings from self-employment, less the following deductions:
You can contribute up to 25%.
When figuring the contribution for your own SEP-IRA, compensation is your net earnings from self-employment, less the following deductions:
You contribute as an employer. That’s important to recognize because that means you have an employer requirement plan and can’t get a deduction if you contribute to a traditional IRA. TurboTax will calculate the maximum allowed SEP contribution for you.
Thank you. I also have a traditional IRA. Is it true that if I have a traditional IRA, I can't contribute to a SEP IRA? Or what are the contribution and tax deduction restrictions in this case?