Posted by William L. Exeter on December 31, 1998 at 15:13:58:
Your contribution would be based on your net income with certain adjustments. The maximum amount that can be contributed to a SEP-IRA for 1998 is $24,000.00, not $30,000.00. The Internal Revenue Code (IRC) sets the maximum contribution limit at $30,000.00 for SEP-IRAs, but there is another part of the IRC that sets the maximum amount of salary or net income that can be used for computing the maximum contribution and the maximum salary or net income has been capped at $160,000 which effectively makes sets the maximum contribution at $24,000.00 not $30,000.00.
Bill Exeter
Security Trust Company