What are SEP contributions based on?
For a self employed individual, are after paying himself a salary, there is only a small profit left over. Are SEP contributions based on the salary or the profits to the business?17
Thank you.
For a self employed individual, are after paying himself a salary, there is only a small profit left over. Are SEP contributions based on the salary or the profits to the business?17
Thank you.
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Permalink Submitted by Alan - IRA critic on Wed, 2015-03-11 20:20
An S Corp paying a W-2 salary will result in the SEP IRA contributions being limited to 25% of the W-2 salary, but no more than 52k for 2014.