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URL:  http://boards.fool.com/in-addition-for-our-seps-i-could-add-8k-40k--31068794.aspx

Subject:  Re: IRA, Roth IRA, and SEP Date:  1/15/2014  5:59 PM
Author:  TMFPMarti Number:  119860 of 121217

In addition, for our SEPs I could add $8k ($40k * 20%) and my wife could add $200 ($1k * 20%).

A caution here. I know you're dealing in round numbers here, but if your Schedule C bottom line is a $40,000 net profit, you cannot make an $8,000 SEP contribution. You must reduce the $40,000 by your deduction for 1/2 of the SE tax before applying the 20%.

Phil
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