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Subject:  Re: SEP IRA Max Contribution? Date:  3/4/2005  3:14 PM
Author:  ziggy29 Number:  44984 of 81343

>> I am considering an offer from a company that is offering a 25% yearly contribution to a SEP IRA. I have no experience with this type of IRA, but the searching the MF web site, I learned that the maximum contribution has a limit of 15% of the annual salary. Can somebody clear this up for me? <<

It used to be 15%; recent tax law changes increased this to 25% (I think this was in 2002).

For 2005, it's the lesser of 25% of salary or $42,000 ($46,000 if age 50+).

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