SEP IRA Contribution Calculator
What Is a SEP IRA Contribution?
A Simplified Employee Pension Individual Retirement Account (SEP IRA) is a type of retirement savings plan designed for self-employed individuals and small business owners. The tool calculates the maximum amount you can contribute based on IRS rules, considering your annual net earnings and employer contribution rate.
How to Use the SEP IRA Contribution Calculator
Follow these simple steps to calculate your SEP IRA contribution limit:
First Step: Enter your “Annual Net Earnings” in the designated field. This is your total earnings from self-employment after business expenses.
Next: Input the “Employer Contribution Rate” (e.g., 25% for most scenarios). Ensure this percentage aligns with the IRS 2025 rules on contribution limits.
Then: Click the “Calculate” button. The tool will compute your contribution using the formula: Net Earnings × Contribution Rate (up to a $66,000 IRS limit for 2025).
Finally: View the detailed result and explanation. It will show your maximum contribution and break down the calculation step-by-step for better understanding.