If you are self-employed, you can deduct the contributions made to your employee's or 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 $285,000) OR
- $57,000 for 2020
See Publication 560 for further information.