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SEP contributions $58,000?

Answered by: 

Question: 
Can someone really contribute and deduct $58,000 in a SEP?
Answer: 

Yes. A small business can contribute up to $58,000 or 25% of the employee’s income. All employees have to be treated the same. But many small businesses only have the one owner/employee. These businesses really enjoy the huge deductions for the owner.

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First published on 12/20/2020

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