Jim is self employed and had a "banner" year in 2015,earning $350,000 net income.He wanted to make a significant contribution to his retirement planning and set up a SEP plan.Since the plan allows for contributions up to 25% of net income,his maximum contribution was

Question

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For 2015, the maximum contribution limit for a SEP plan was the lesser of 25% of net income or $53,000. Therefore, even though 25% of $350,000 is $87,500, the maximum contribution allowed was $53,000.

Jim Is Self Employed and Had a "Banner" Year in 2015,earning