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Author: Hear2Stay Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75616  
Subject: SEP-IRA Contribution Date: 1/14/2005 3:11 AM
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Hello,

When calculating the max employee SEP-IRA contribution for a corporation, do you count total wages (ie $2000) or only the amount
actually paid to the the employee (ie $1607 -- $2000 total wages minus
withholdment, social secuirty and medicare)?

Thanks!
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Author: atljcr Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 44029 of 75616
Subject: Re: SEP-IRA Contribution Date: 1/14/2005 8:13 AM
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For SEP-IRA contributions you use the gross pay amount not the net. If an employee's pay for the year is $50,000 gross and you were using a ten percent contribution then the total contribution would be $5,000

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