No. of Recommendations: 0
I have full-time job with an employer that offers no retirement plans (403b, SEP, or otherwise). I also run a (very) small business "on the side". I have Roth IRA to which I anually contribute the maximum amount. My questions:

1) If I open a SEP, is my contribution limited by total income or just income from self-employment?

The latter.

If the latter:

2) Is the limit based on gross sales, gross income, or profit?

Net income from self-employment (the bottom line of Schedule C). There are little quirky things that have the effect that you can't contribute the maximum percentage of net income, but that's the closest figure of the three you offered.

3) Are there any other tax-deferred options available to get me closer to the 15% total-income-limit for those with 401(k) plans or who are wholly self-employed?

Check out Keough plans in IRS Publication 560. Your other options regarding self-employment income are covered there also.

Phil Marti
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.