SEP-IRA Contribution Limits

Corey —  April 6, 2010

Contribution Limits

       You cannot contribute directly to a SEP-IRA. However, your employer can contribute on your behalf. If you are self-employed, then this article will help you figure out the maximum you can contribute for yourself. The maximum amount you can contribute to a SEP-IRA depends only on your compensation. These are the correct SEP-IRA contribution limits for 2009 and 2010. Contributions to other qualified retirement plans (401(k), 403(b), SIMPLE, or SEP) will count toward this limit.

  • Up to 25% of your compensation, but not more than $49,000 total

Deadline for Contributions

       The deadline for contributions to SEP-IRAs is the same as the tax deadline for your employer. If you are self-employed, the deadline is April 15th. Otherwise, the deadline is generally March 15th unless you are on a fiscal year tax deadline. Any tax return extensions you file will also extend the deadline for SEP-IRA contributions.

Tax Deduction for Contributions

       SEP-IRA contributions are deductible by your employer (or if you’re self-employed, by your business or on Schedule C). You receive no deduction on your tax return for contributions made on your behalf to a SEP-IRA. These contributions are not eligible for the Retirement Savings Contribution Credit.



Corey is currently pursuing a Master of Arts degree in religion. While he enjoys learning and writing about Christianity, another one of his new passions is writing about personal finances in order to help others make wise decisions with their money.