<table class='pure-table' role='grid'><tr><th scope="col">Determine Amount of Contribution</th><th></th></tr><tr><td>Type of business</td><td>Sole Prop/Partner</td></tr><tr><td>Tax year</td><td>2025</td></tr><tr><td><b>1. Determine the Amount of Self-employment Tax</b></td><td></td></tr><tr><td class='indent'>A) Enter net business profit (from Schedule C, C-EZ, or K-1)</td><td>$100,000</td></tr><tr><td class='indent'>B) Multiply amount in Line A by .9235</td><td>$92,350</td></tr><tr><td class='indent'>C) Enter 12.4% (Social Security) of Line B, but not more than $21,836</td><td>$11,451</td></tr><tr><td class='indent'>D) Enter 2.9% (Medicare) of Line B </td><td>$2,678</td></tr><tr><td class='indent'>E) Add Lines C and D for your total self-employment tax</td><td>$14,130</td></tr><tr><td><b>2. Determine Adjusted Net Business Profit</b></td><td></td></tr><tr><td class='indent'>F) Divide Line E by 2 for your self-employment tax deduction</td><td>$7,065</td></tr><tr><td class='indent'>G) Subtract Line F from Line A</td><td>$92,935</td></tr><tr><td><b>3. Contribution Factor and Adjusted Earned Income</b></td><td></td></tr><tr><td class='indent'>H) Maximum contribution percentage</td><td>25.00%</td></tr><tr><td class='indent'>I) Add 1.00 to H to determine contribution factor</td><td>1.25</td></tr><tr><td class='indent'> J) Divide Line G by Line I to determine Adjusted Earned Income (not to exceed $350,000)</td><td>$74,348</td></tr><tr><td><b>4. Determine Maximum Profit Sharing Contribution for 401(k) and SEP</b></td><td></td></tr><tr><td class='indent'> K) For corporations, multiply Line G by Line H. Others multiply Line J by Line H (not to exceed $70,000)</td><td>$18,587</td></tr><tr><td><b>5. Determine Maximum Self-Employed 401(k) Contribution</b></td><td></td></tr><tr><td class='indent'>L) Enter maximum employee 401(k) contribution available</td><td>$23,500</td></tr><tr><td class='indent'>M) Add Line K and Line L</td><td>$42,087</td></tr><tr><td class='indent'>N) Choose the lesser of Line M and $70,000</td><td>$42,087</td></tr><tr><td class='indent'>O) Enter maximum 401(k) catchup, if applicable</td><td>$0</td></tr><tr><td class='indent'>P) Add Line N and Line O to determine the Maximum Self-Employed 401(k) Contribution</td><td>$42,087</td></tr><tr><td><b>6. Determine Maximum SEP Contribution</b></td><td></td></tr><tr><td class='indent'> Q) Maximum SEP Contribution is equal to the Maximum Profit-Sharing Contribution (not to exceed $70,000)</td><td>$18,587</td></tr><tr><td><b>7. Determine Maximum SIMPLE IRA Contribution</b></td><td></td></tr><tr><td class='indent'>R) Enter maximum SIMPLE IRA deferral</td><td>$17,600</td></tr><tr><td class='indent'>S) Enter maximum SIMPLE IRA catchup, if available</td><td>$0</td></tr><tr><td class='indent'>T) Add Line R and Line S for total employee SIMPLE IRA contribution</td><td>$17,600</td></tr><tr><td class='indent'>U) Determine maximum SIMPLE IRA matching contribution (lesser of Line T and 3.0% of Line B)</td><td>$2,770</td></tr><tr><td class='indent'>V) Add Line T and Line U to determine the Maximum Simple IRA Contribution</td><td>$20,370</td></tr></table> <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='1' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Maximum Contribution Limits' xAxisName='' numberPrefix='$' bgColor='FFFFFF' showBorder='1' borderColor='FFFFFF' borderThickness='1' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='' /></categories><dataset seriesName='Self-Employed 401(k)'><set value='42087.0' /></dataset><dataset seriesName='SIMPLE IRA'><set value='20371.0' /></dataset><dataset seriesName='SEP IRA'><set value='18587.0' /></dataset></chart>"); // --> </script>