Self-Employment Retirement Plan Maximum Contribution

Compensation for a self-employed individual (sole proprietor or partner) is that person's "earned income."* The starting point to determine the individual's earned income is the net profit amount from the Schedule C (or Schedule K-1 for a partnership). Use this calculator as a starting point to assess your potential maximum contribution amount for a Self-Employed 401(k), a SIMPLE IRA, or an SEP. *Earned Income = Net Profit - 1/2 of Self-Employment Tax - Contribution
Plan Information
Type of business 
Contribution tax year 
Current age 
Net profit from Form 1040-Schedule C ($)
(or W-2 income if corporation)
 
   
This is a hypothetical example used for illustrative purposes only. This worksheet provides an estimate based on certain assumptions. It is not intended to provide specific investment advice. Distribution rules are similar for most retirement plans, including 401(k) plans, SIMPLE plans, and SEP IRAs. Distributions are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. With 401(k), SIMPLE plans, SEP IRAs, Under the SECURE Act, in most circumstances, once you reach age 72, you must begin taking required minimum distributions from a 401(k), SIMPLE plans and SEP IRAs. You may continue to contribute to IRAs past age 70½ under the SECURE Act as long as you meet the earned-income requirement.

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