How much can I contribute to a SEP IRA?

You can contribute up to 25% of your net income to a SEP IRA, up to a maximum of $54,000 per year. Like a traditional IRA, SEP IRA contributions are pretax income: you don't pay tax on your contribution when you invest it, but do pay tax when you withdraw it.

If you're using a SEP IRA for your employees as well as yourself, note that most SEP IRAs require the same proportional contribution percentage for the employer and each eligible employee. So if you contribute 25% to your net income to your own account, you'll also have to contribute 25% of your employees' net income to their accounts.

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