How much can I contribute to a SEP account?

July 8, 2005

Subject:  SEP Accounts
From:  Connie
Date:  Sat, 18 Jun 2005

Can I contribute more to my SEP than the $40,000 deductible amount?

Please advise.

Thank you.
Connie

Answer

Date:  Fri, 01 Jul 2005

Hello Connie,

The maximum contribution was increased to $41,000 for 2004 and $42,000 for 2005. Remember the maximum contribution is 25% of qualifying compensation.

Non-deductible contributions are not allowed in addition to the deductible contributions.

Good luck!
Mike Gray

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