Greetings:

I just opened an SEP IRA b/c I’m self employed and this option allows me to contribute up to 25% of my compensation. That leads me to question #1: What exactly is my “compensation”? Is it my gross revenue? Or the number that’s spit out when I finish Schedule C (profit/loss)? Or is it my AGI? Or is it my taxable income? My banker was not able to really answer this question.

Question #2: Does the contribution calendar mirror the tax calendar? I.E., I can wait until early January to “top off” with extra monies or remove excess contributions, based on my compensation for the year? As a self-employed person, I don’t know with 100% certainty what I will make in a year. And I do want to put in the maximum allowable amount.

Thanks so much.