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The SEP IRA is one of the best ways for small businesses and individual business owners to help employees save for retirement, and they’ll be able to contribute even more in 2025 than in 2024.
If you’re self-employed, you can put more of your income away by contributing to a Simplified Employee Pension plan, or SEP IRA. The contribution limit for a SEP IRA for 2023 is 25% of your ...
If you’re self-employed with no employees, you can make SEP-IRA contributions if you have net earnings from your business. For 2024, you can contribute an amount to your own account up to 20% or ...
SEP-IRA contributions are treated as part of a profit-sharing plan. For employees, the employer may contribute up to 25% of the employee's wages to the employee's SEP-IRA account. For example, if an employee earns $40,000 in wages, the employer could contribute up to $10,000 to the SEP-IRA account.
3. Workplace retirement account contribution limits increase. Most workplace retirement plans—including 401(k)s, 403(b)s, 457s and TSPs—allow employees to contribute up to $23,000 in 2024.
However, your maximum contribution to the SEP IRA and the 401(k) together is $69,000 in 2024 or $70,000 in 2025, including both employer and employee contributions.
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