How much can I contribute to a SEP?

You may be limited to the amount of contributions you are permitted to make to a qualifying SEP plan. 

Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:

  • 25% of the employee's compensation, or
  • $70,000 for 2025 ($69,000 for 2024; $66,000 for 2023)

Contribution limits to your own SEP plan are dependent on your net earnings. If you had a net loss, you cannot make any contributions for yourself. However, you can still make contributions for your employees. Refer to the worksheet in Pub 560 to determine your contribution limits. 

How do I report the contributions I made to an SEP?   

Contributions made for your employees are reported on your Schedule C as follows:

  1. Federal Section 
  2. Income (Select my forms)
  3. Profit or Loss from Business
  4. General Expenses
  5. Pension and profit sharing

You can report contributions made to your own SEP plan in the program by visiting:

  1. Federal Section 
  2. Deductions (Select my forms)
  3. Adjustments to Income 
  4. Contributions to SEP, Simple, and Qualified Plans

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