Simplified Employee Pension Plan Contribution Limits
The maximum annual contribution to a SEP plan is the lesser of “25% of compensation” (20% of net profit after deducting the SEP contribution for the self-employed proprietor’s contribution) or:
SEP contributions on behalf of an owner-employee are computed in the same manner as for a profit-sharing Keogh.
Computing the Maximum Contribution
The maximum contribution for a self-employed individual is determined in the same manner as a SE Retirement (Keogh) plan.
No Catch-Up Contribution
The catch-up contribution allowed for age 50 and over participants of Traditional and Roth IRAs is not allowed for SEP-IRAs.