2006 SEP IRA Contribution Limits
The 2006 SEP IRA contribution limit is $44,000. Of course this is further limited to 25% of an individual’s 2006 compensation. Another key restriction for you lucky folks is that only the first $220,000 dollars of compensation can be counted. You can read more from our friends at the IRS.
For those of you that don’t know a SEP IRA is a retirement plan that costs much less in administrative fees than a 401k. For this reason many small businesses choose to use them.
If you managed to set aside $44,000 towards your retirement this year I extend to you a big wooo-whooo. Congratulations. For those of you that didn’t take heart in the little steps, consistent progress leads to huge results!