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Is my annual contribution limited to a percentage of income like a SEP or Profit Sharing plan?

April 26, 2017annual contribution income limited PERCENTAGE Plan profit SEP sharing

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Is my annual contribution limited to a percentage of income like a SEP or Profit Sharing plan?

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No. Your annual contribution is determined as a function of age, compensation, investment performance, actuarial assumptions, and maximum benefit allowed. An actuary calculates the amount that you must fund each year.