Sep contribution limitatation
HUSBAND AND WIFE ARE EQUAL EQUITY MEMBERS IN A LLC.
THE LLC WILL REPORT NET INCOME IN EXCESS OF $500,000
IS THE MAIXIMUM SEP CONTRIBUTION REPORTED THEIR FORM 1040 LIMITED TO 58,000?
HUSBAND AND WIFE ARE EQUAL EQUITY MEMBERS IN A LLC.
THE LLC WILL REPORT NET INCOME IN EXCESS OF $500,000
IS THE MAIXIMUM SEP CONTRIBUTION REPORTED THEIR FORM 1040 LIMITED TO 58,000?
Permalink Submitted by William Tuttle on Mon, 2022-01-03 02:48
A self-employed individual’s maximum employer contributions are the lessor of the statuary annual addition limit (2021 = $58K) and their compensation = their self-employed earned income (net earnings from self-employed earned income) = business profit – 1/2 SE tax.