How much may be contributed to a SEP?
• 25% of compensation, or • $46,000 for 2008 ($49,000 for 2009 and subject to annual cost-of-living adjustments for later years). The limits in the preceding sentence apply in the aggregate to contributions an employer makes for its employees to all defined contribution plans, which includes SEPs. Only up to $230,000 in 2008 ($245,000 in 2009 and subject to annual cost-of-living adjustments for later years) of an employee’s compensation may be considered. Contributions must be made in cash. Property cannot be contributed.
