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Posted on 11/9/23 at 9:31 am to Billy Blanks
quote:
I put it 25% of what I pay myself.
Be careful. Depending on your business set up, the “25%” max contribution of income really works out to a 20% contribution of income. There is a circular calculation in what income is eligible for the contribution, so once you deduct SEP it ends up being only 20% of your pre-SEP deduction income.
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