No. of Recommendations: 0
Sorry to piggyback on someone else's thread, but I have a related question. The maximum percentage (or dollar amount) of SEP IRA contributions is the lesser of 25% or $42,000. But is the percent maximum applied on a per paycheck basis?

In other words, say I'm the sole shareholder and my S. Corp. has $5,000. Can I put $2,500 into my SEP IRA and pay myself a salary of $2,500 (i.e. 50% of my paycheck, forgetting taxes for the moment) as long at it does not take me over the ANNUAL percentage of 25% or 42k?
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.