Question

SEP IRA

What is the maximum percentage contribution amount allowed on a self-employed IRA?

The maximum percentage is 25% of the employees compensation.

Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:

Note: Elective salary deferrals and catch-up contributions are not permitted in SEP plans.

If you’ve contributed more than the annual limits to an employee’s SEP-IRA, find out how to correct this mistake.

Here is an IRS article related to this.

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