Editing SEP-IRA (section)

====Overall====
Thus, the overall contribution limit (barring limits) is 20% of 92.9% (that is, 18.6%) of net profit.

For example, if a sole proprietor has $50,000 net profit from self-employment on Schedule C, then the "1/2 of self-employment tax credit", $3,532, shown on adjustments to income at the bottom of [[form 1040]], will be deducted from the net profit. The result is then multiplied by 20% to arrive at the maximum SEP deduction, $9,293.<ref name=":0" />