Traditional IRA –If you are single and do not participate in an employer sponsored retirement plan (401(k), 403(b), SIMPLE or SEP IRA, etc. Technically, the limit for SEP IRA contributions for 2020 is 25% of eligible income or $57,000, whichever is less. Your max SEP IRA contribution is right around $37,757 for 2020. I mentioned above that there’s a way to contribute to both a Traditional IRA and a SEP IRA. Traditional IRA and SEP IRA together –Two scenarios work really well here.

Source: Forbes April 16, 2021 14:36 UTC