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QUESTION DETAIL
Related User
Votes
I own a chapter S corp and I am the only employee. The company pays me a salary as well as makes profits that flow to my personal return by a K-1. I would like to open a SEP IRA, but I am confused as to the amounts that the company can contribute
ANSWER
The BIDaWIZ Team's Answer:
You can contribute 25% of your gross income up to $51,000 for 2013 and $50,000 for 2013. By gross income this refers to only your W-2 wages or salary. The amount of income that is distributed to you via the K-1 are not included in the contribution limit calculation for the SEP IRA.
