I know there are percentage limits on the SEP IRA for what someone can contribute.
With my S-Corp, I pay myself a salary, and the rest of the profits are paid out as a distribution (I am the only shareholder).
Would my % limit be based on my salary, or on my salary+distributions?
Thanks.
I believe that k-1 earnings are not includable in the calculation, only EARNED income. [Note: That's the IRS definition of earned. I'm betting you "earned" every penny.]
Are (or your spouse) the only employee of the company?
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