If you are self-employed, you can deduct the contributions made to your own SEP-IRA.
You must be self-employed to take this deduction.
How much can I contribute?
Contributions to employee's or your own SEP-IRA cannot exceed the lesser of:
- 25% of the employee's compensation (up to $330,000) OR
- $66,000 for 2023 ($61,000 for 2022)
What about contributions made to my employee's plan?
To deduct contributions made to your employee's plan, you will need to make an entry on the Schedule C under General Expenses.
See Publication 560 for further information.