Information is available in IRS
Publication 560, Retirement Plans for Small Business; owners can find it on the IRS website,www.irs.gov.
If your client is self-employed, their SEP IRA contribution is based on their Schedule C net profit, along with a few adjustments (for the exact calculation, use the worksheet in IRS
Publication 560).
To review the many differences in plans, head to www.irs.gov/retirernent/ index.html or read IRS
Publication 560. And good luck with the new venture.
To resolve the potential complexity of this computation, IRS
Publication 560 specifies the following steps in determining the Keogh deduction:
For more information about the technical aspects of each plan, consult with a discount broker, independent financial advisor or IRS
Publication 560: Retirement Plans for Small Business.