What is the 2024 SEP-IRA contribution limit?

$69,000 or 25% of W-2 compensation (20% of net self-employment income adjusted for SE tax deduction) — whichever is less. No catch-up contributions for SEP-IRAs.

How is the self-employed SEP contribution calculated?

Net SE income = Schedule C profit times 92.35% (after deducting employer-equivalent SE tax). SEP contribution = net SE income times 20% (accounting for the circular calculation).

How does SEP-IRA compare to Solo 401k?

SEP-IRA: simpler, employer-only contributions, no catch-up. Solo 401k: employee plus employer contributions (up to $69,000), catch-up contributions, Roth option, loan provision. Solo 401k allows higher contributions at lower income levels.

When must SEP-IRA contributions be made?

By the tax return due date including extensions. A 6-month extension gives until October 15 to fund the SEP-IRA, making it the most flexible retirement plan for variable income earners.

Can I have both a SEP-IRA and a regular IRA?

Yes. Having a SEP-IRA is treated as having a workplace retirement plan, which affects traditional IRA deductibility for higher earners. Roth IRA contributions are not affected by workplace plan status.

US SEP-IRA Contribution Calculator 2024

Calculate maximum SEP-IRA contribution: 25% of W-2 compensation (or 20% of net SE income after SE tax deduction). Limit: $69,000 for 2024. Easy setup, immediate vesting, flexible contributions.

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Annual Rate (%)

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate maximum SEP-IRA contribution: 25% of W-2 compensation (or 20% of net SE income after SE tax deduction). Limit: $69,000 for 2024. Easy setup, immediate vesting, flexible contributions. Use the sep-ira contribution 2024 result to inform your calculation.

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US SEP-IRA Contribution Calculator 2024

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Frequently Asked Questions

What is the 2024 SEP-IRA contribution limit?

How is the self-employed SEP contribution calculated?

How does SEP-IRA compare to Solo 401k?

When must SEP-IRA contributions be made?

Can I have both a SEP-IRA and a regular IRA?