Example: Deduction Worksheet for the Self-Employed Net Profit $200,000 Deduction from Self-Employment Tax $9,504 Net Earnings for Determining Contribution Deduction $190,496 = Net Profit − Self-Employment Tax Deduction Plan Contribution Rate 21.00% Rate for Self-Employed 0.174 = Plan ...
SEP IRA Contribution Limits for 2023 The SEP IRA contribution limits have changed in the last few years. The law no longer differentiates between “sole proprietor, partnership or LLC” and “S-corp or C-corp.” For 2023, the SEP IRA contribution limits cannot exceed the lesser of: 25% of...