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Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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I am a sole proprietor with no employees. My AGI is over 200k.

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I am a sole proprietor with no employees. My AGI is over 200k. Can I start a SEP with no employees, or is there a different type of retirement plan I would start with no employees. Thanks, John
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.
Yes, you can start a SEP or another type of retirement plan even though you have no employees. The amount that you can contribute is based on your net profit from line 31 of Schedule C. If your net profit is $200,000 on Schedule C then the maximum SEP contribution that you could make would be approximately $38,000. You can contribute anywhere from $0 up to the maximum amount each year at your discretion.
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