Sep Contribution Limits 2024 For Employees

Sep Contribution Limits 2024 For Employees. To understand how a solo 401 (k) works, think of contributing both as an employee of your company and as the employer. Contributions to an employee’s sep ira cannot exceed the lesser of either 25% of their compensation or $66,000 in 2023 and $69,000.

A limit applies to the amount of annual compensation you can take into account for determining retirement plan contributions. According to the irs, in 2024, sep ira contributions can be made up to 25% of net income or $66,000,.