How to calculate SEP IRA contributions if you are self employed. In this video I’m focusing on the SEP IRA for the self employed, schedule C filer or sole proprietor.
The SEP IRA contribution calculation for small business owners who are schedule C filers is different than S corporation small business owners.
The amount that is used as compensation differs because 1/2 of self employment is deductible as a business expense and contributions are only from employers. Employees do not contribute to a SEP IRA.
0:00 | Introduction
1:15 | SEP IRA Contribution Deadline
1:45 | SEP IRA Contribution Limits
3:02 | SEP IRA Net Profit
4:20 | Schedule SE for Self Employment Tax
7:05 | 1/2 Self Employment Tax
8:12 | SEP IRA Contribution Calculation
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Are you ready for professional investment advice? We can help you with financial planning and asset management. Let us guide your investments to your financial freedom. START HERE
Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you.
TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP®
CERTIFIED FINANCIAL PLANNER™
Company Website:
twitter: @travissickle
Instagram:
facebook:
LinkedIn:
Sickle Hunter Financial Advisors
1646 W Snow Avenue
Suite 144
Tampa, FL 33606
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Awesome SEP Calc
Video!! You are so easy to follow!!
Thank you!
thank you! how do you also calculate the employer contributon for qualified employees? I am starting a SEP this year, and just do not understand how to use the employer contribution for the employees (and myself) as a deduction.
Thanks for video. I get confused when you say "employer". I do not have a biz. I have worked 38 yrs as an employer. But now I am paid in all cash (I teach golf ). Does your video apply to me or do I have to have a biz?
wow! Man you are amazing. Thank you for the help!!!
Can I contribute to a traditional Ira and SEP and max both out???
Thanls. I was quite confused as to how much to put in my sep ira vs my dividend portfolio. I always wondered why people just did not put everything into a sep and now i know. Youre limited based on how much you make each year.
This was immensely helpful. Thank you so much!
Thank Youuu!
Thank you so much for the explanation! Subscribed! I'm self-employed/no employees, and recently established a SEP. I have already filed my tax for 2020 in Feb, and obviously I didn't report any SEP contribution. Is it still possible to contribute to my SEP for 2020 (now that I can clearly know the exact amount I can contribute for that year). or is it too late, and I should start contributing in 2021? Thank you.
Excellent explanation!
Nicely done!
What happens when there’s been an over contribution to a SEP ? That is, how is it rectified to the allowable contribution, say , upon seeing my CPA next year? (I just know I’m going to miscalculate by a grand or two!)
Good demo. I’ve been taught to just memorize the magic numbers on this. 18.59 for 25%, 12.12 for 15%. Nice to understand where these numbers come from though
Thank you so much for doing this!!!!
Is there a catch-up associated with a SEP? I am a freelance consultant. I have already contributed the maximum and catch-up to a Roth IRA. Great video. Thank you.
Thank you and great video! So for a self-employed sole proprietor the max contribution is just 20%.
What about for 2020? Not exceeding the lesser of 20% or $57,000? Or it still stays at 20%?
I think you forgot to put the links to the Schedule C and Schedule SE forms in the description
Sent you a note Trav. tks.
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