| If you earn only self-employed income, or your business is unincorporated, the worksheet below will help you calculate your annual contribution to your SEP-IRA. To calculate contributions for your employees, simply multiply the same percentage of earned income you are contributing for yourself by their wages, as reported on their W-2. |
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| If your business is incorporated, simply multiply the percentage of compensation you wish to contribute by the W2 wages for yourself and any eligible employees. |
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You will need to have your income tax forms nearby (particularly IRS Form 1040 and either Schedule C, Schedule C-EZ, or Schedule K-1). |
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The maximum contribution to a Fidelity SEP-IRA is 25% of compensation up to $45,000 for the 2007 plan year and $46,000 for the 2008 plan year. |
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The maximum annual compensation on which contributions can be based is $225,000 for 2007 and $230,000 for 2008. For self-employed people, compensation means earned income. |
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