Calculate contribution limits and project retirement savings for self-employed individuals and small business owners using a Simplified Employee Pension (SEP) IRA.
Business Financials
Savings Forecast
Max Annual Contribution$20,000Estimated 2024 Limit
Projected Balance$1,013,394After 20 years
Account Growth Projection
About this calculator
Overview
Calculate contribution limits and project retirement savings for self-employed individuals and small business owners using a Simplified Employee Pension (SEP) IRA.
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Pro Tips
What is a SEP IRA?: A SEP IRA (Simplified Employee Pension) is a retirement plan for self-employed individuals and small business owners. It is easy to set up and has higher contribution limits than traditional IRAs.
How much can I contribute?: For 2024, you can contribute the lesser of 25% of your compensation (or 20% of net self-employment income) or $69,000.
Are SEP IRA contributions tax-deductible?: Yes! Contributions are made by the employer (even if you are the only employee) and are tax-deductible for the business, reducing your taxable income.
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Fun Facts
"Unlike a 401(k), a SEP IRA does not have a 'catch-up' contribution for those aged 50 or older."
"SEP IRAs are popular because they can be set up and funded as late as the tax filing deadline (including extensions)."
"If you have employees, you must contribute the same percentage of their salary as you do for yourself."
