What is the process for calculating the SEP contribution for self-employed individuals?

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1110890

2026-06-02 19:45

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To calculate the SEP contribution for self-employed individuals, you need to determine your net earnings from self-employment, apply the contribution rate (which is usually around 20 of net earnings), and then subtract the self-employment tax deduction. This final amount is the maximum contribution you can make to your SEP IRA.

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