What is the max amount that you can contribute to a SEP in 2001 and 2002?
July 16, 2001
Subject: max. contribution to SEP
Date: Sat, 30 Jun 2001
From: Hugo Knuesel
I would like you to enlighten me on this:
What's the max. $ amount that can be contributed to a SEP in 2001 and in 2002?
Thanks for your advice.
Date: Wed, 11 July 2001
The maximum limitation for each year may be limited by the maximum compensation amounts.
The maximum contribution for 2000 was 15% of $170,000 or $25,500. Since the maximum compensation for 2001 is the same, the same limit applies.
The maximum contribution for 2002 will be the lesser of $40,000 or 25% of $200,000, so it will be $40,000.
The IRS publication for Retirement Plans for Small Business is Publication 560. SEPs are discussed at pages 5 and 6 of the 2000 publication. The update for the new tax law won't be released until next year.
I hope you find this information helpful.
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