FullCalculator

SEP IRA Calculator

Contribution Limit

Growth Projection

Formula

Self-Employed: Max = min(Adjusted Net Income × 25%, $69,000); Employee: Max = min(Salary × 25%, $69,000)

Frequently Asked Questions

What is a SEP IRA?
A Simplified Employee Pension (SEP) IRA is a retirement plan for self-employed individuals and small business owners. It allows much higher contribution limits than a Traditional IRA, up to 25% of compensation or $69,000 (2024).
How is the self-employed SEP contribution calculated?
For self-employed individuals, the effective contribution rate is approximately 20% of net self-employment income (not 25%) because you must reduce your income by half the self-employment tax before calculating the contribution.

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