gail[at]atwoodarchitects.com wrote:

- quote -

You are saving 25%. When you put 20% of the pre-SEP amount
into the SEP it means the SEP is then 25% of the net amount.

Start with $1000. Put $200 into a SEP. That leaves $800 for
you. $200 is 25% of $800.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I have two business/sole proprietor. For one I file a
Schedule C. It is profitable. The other is farming (I file
Schedule F) which almost always has a loss. I combine the
two incomes and file a SE which means that my SS taxes are
reduced by the farming income (loss). I have a SEP
associated with the Schedule C business and I put 20% of the
profit each year into my SEP. I called the IRS three times
and each time they said this was correct even tho it is not
20% of the total on the SE. Is this correct? And why
can't I save 25% like most do on a SEP? Is there a better
retirement Plan?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >