When is the deadline to open and fund a SEP-IRA?

You can open and fund a SEP-IRA all the way up to your tax return filing deadline, including extensions (typically April 15 or October 15).

Updated: August 2026 • Verified v1.2

Self-Employed SEP-IRA Contribution & Tax Savings Calculator

Finance & MathPopular

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SE_Tax = NetProfit * 0.9235 * 0.153; AdjEarnings = NetProfit - SE_Tax/2; MaxContrib = Min(69000, AdjEarnings * 0.20)

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Understanding Your Results

Calculates statutory 50% SE tax deduction, adjusted net earnings base, maximum deductible SEP-IRA contribution (capped at $69,000), immediate federal income tax savings, and net out-of-pocket investment cost.

Practical Guidance & Next Steps

Sole proprietors must contribute using their adjusted net profit. Contributions can be made up until your tax filing deadline (including extensions, until October 15).

What is this?

A retirement planning utility that calculates maximum allowable SEP-IRA contributions and tax savings for self-employed individuals.

How does it work?

1. Enter net Schedule C / 1099 business profit. 2. Select your marginal federal income tax bracket. 3. View maximum tax-deductible contribution, immediate tax savings, and net cost.

Why use it?

Ensures full compliance with IRS publication 560 formulas and maximizes tax deductions.

Technical Scope & Calculation Limitations

Models IRS statutory sole proprietorship SEP-IRA formulas.

Frequently Asked Questions

IRS rules state that your contribution cannot exceed 25% of your net compensation. Because your contribution itself reduces your net earnings, the mathematical formula becomes `0.25 / (1 + 0.25) = 20.0%` of net earnings after subtracting half of self-employment tax.

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