For 2021, the contribution limit to SEP IRAs for those who are self-employed is the lesser of 20% of net income from self-employment, or $58,000.
For 2022, the contribution limit has increased to the lesser of 20% of net income from self-employment, or $61,000.
SEP IRA contributions depend on the type of your business, your self-employment income and IRS income and contribution limits that vary by year. To learn more about how much you specifically can contribute, please refer to the IRS calculator or speak with your tax advisor.
Please note that Betterment currently only supports SEP IRAs for small business owners who have no employees.
If you currently participate in a 401(k) plan administered or advised by Betterment (or its affiliate), please understand that this article is a general educational offering and that neither Betterment nor any of its affiliates are acting as a fiduciary, or providing investment advice or recommendations, with respect to your decision to roll over assets in your 401(k) account or any other retirement account.