How much can I contribute to a SEP-IRA through my LLC while having a 401K through a W-2 employer

[tungher]

I currently work full time at a employer as a W-2 employee with a 401K. I also run a small business LLC that I opened a SEP IRA for as well.

I maxed out my W-2 Employer 401k contribution of $23,000 for the 2024, and employer match is $4,344.

I am looking to max out my SEP-IRA as well.  For 2024 I have $201, 354 in profits from my LLC.  

Shouldn't I be able to  deduct 25% of $201,354 = $50,388?

Instead it is telling me the maximum i can contribute is as follows: $62,731

                                          401K - $23,000

                                       SEP-IRA  - $39,731

Where / How is this $62,731 being calculated from? 

Employer match - $4344 - is not counted towards the total. 

THANK YOU!!!

[RobertB4444]

Your maximum combined contribution for your SEP and your 401k is $69,000 for 2024.  The system seems to think you will have hit that limit if you contribute more than $39,731 to your SEP.  Do you have any other IRA contributions that are listed anywhere else in the return?

@tungher 

[tungher]

i checked my form 1040 and the $23,000 was already subtracted from outside employer W-2 salary.  

I think the $69,000 maximum is related to the self employed maximum? 

I have now removed any self employed 401K contribution and it now says that I have to contribute $62,731 to the SEP-IRA.  I am not sure how they got to this number bc 25% of $201,354 is $50,388?

[tungher]

Just to confirm.  One can contribute $23,000 through an outside employer sponsored 401k. 

IN ADDITION one can contribute up to $69,000 through a self employed IRA

thank you as I am a noobie

[dmertz]

Nothing about additions to the 401(k) has any bearing on the maximum SEP contribution from your LLC.  SEP contributions are employer contributions ad employer contributions are unaffected by contributions at a different employer (as long as the two companies are not considered to be a controlled group that is required to be treated as a single employer for the purpose of a retirement plan).