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Subject:  Re: SEP-IRA limits Date:  2/18/2001  4:33 PM
Author:  ptsurmr Number:  27970 of 88772

TMFPixy writes:
The SEP compensation cap hasn't changed from the $170,000 effective in 2000. Therefore, the maximum dollar limit for contributions remains $25,500. That works out to 15% of the $170K compensation cap.


Assume a self-employed individual with 170K+ earnings makes the max SEP-IRA contribution of $25,500 (15%). It is my understanding (reading publication 560) that only $22,176.50 (13.0435%) of this amount is deductible. The remaining $3,323.50 is a non-deductible contribution. Is this correct?

Alternatively, if the same self-employed individual were to make a SEP-IRA contribution of $22,176.50, this entire amount would be deductible. Is this correct?

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