SEP Contribution Limits (including grandfathered SARSEPs)
- 25% of the employee's compensation, or
- $52,000 for 2014 ($53,000 for 2015)
If you’ve contributed more than the annual limits to an employee’s SEP-IRA, find out how to correct this mistake.
Participants in Salary Reduction Simplified Employee Pension (SARSEP) plans established before 1997 were entitled to make elective salary deferral contributions. For these plans, a participant’s elective deferral contributions are further limited to $17,500 in 2014 ($18,000 in 2015) or 25% of their compensation, whichever is less. Catch-up contributions are not subject to this limit.
- Simplified Employee Pension (SEP)
- Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
- Publication 4333, SEP Retirement Plans for Small Businesses
- FAQs regarding SEPs