---
title: "SEP IRA Contribution Limits by Year"
description: "SEP IRA contribution limits by year from 2006 to 2026. Covers the annual dollar limit, 25% compensation cap, and the compensation ceiling for self-employed."
canonical: https://www.getswoopr.com/tables/retirement/sep-ira-contribution-limits/
source: "Swoopr Investment: https://www.getswoopr.com"
---

## Direct Answer

> The SEP IRA contribution limit for 2026 is the lesser of $72,000 or 25% of compensation (up to the $360,000 compensation cap). Self-employed individuals use net self-employment income, which effectively makes the rate about 20% of gross net profit. There is no catch-up contribution for those age 50 or older.

# SEP IRA Contribution Limits by Year

## SEP IRA limits by year (2006-2026)

The SEP IRA limit tracks the Section 415 defined contribution limit. The compensation cap limits which earnings count toward the 25% calculation.

| Year | SEP IRA Limit | % of Compensation Cap | Compensation Cap |
| --- | --- | --- | --- |
| 2006 | $44,000 | 25% | $220,000 |
| 2007 | $45,000 | 25% | $225,000 |
| 2008 | $46,000 | 25% | $230,000 |
| 2009 | $49,000 | 25% | $245,000 |
| 2010 | $49,000 | 25% | $245,000 |
| 2011 | $49,000 | 25% | $245,000 |
| 2012 | $50,000 | 25% | $250,000 |
| 2013 | $51,000 | 25% | $255,000 |
| 2014 | $52,000 | 25% | $260,000 |
| 2015 | $53,000 | 25% | $265,000 |
| 2016 | $53,000 | 25% | $265,000 |
| 2017 | $54,000 | 25% | $270,000 |
| 2018 | $55,000 | 25% | $275,000 |
| 2019 | $56,000 | 25% | $280,000 |
| 2020 | $57,000 | 25% | $285,000 |
| 2021 | $58,000 | 25% | $290,000 |
| 2022 | $61,000 | 25% | $305,000 |
| 2023 | $66,000 | 25% | $330,000 |
| 2024 | $69,000 | 25% | $345,000 |
| 2025 | $70,000 | 25% | $350,000 |
| 2026 | $72,000 | 25% | $360,000 |

![Line chart of SEP IRA limits by year (2006-2026), 2006 to 2026, with 2 series. SEP IRA Limit starts at $44,000, peaks at $72,000 in 2026, falls to a low of $44,000 in 2006 and ends at $72,000 in 2026.](https://www.getswoopr.com/images/charts/tables-retirement-sep-ira-contribution-limits-1.webp)
*SEP IRA limits by year (2006-2026), charted from the table above. Select the chart to open it full size.*

Source: [IRS: SEP IRA Contribution Limits](https://www.irs.gov/retirement-plans/sep-ira-contribution-limits). Last verified: September 2026. Verify current-year figures at IRS.gov before making decisions.

## Self-employed calculation note

Self-employed individuals calculate SEP contributions on net self-employment income (Schedule SE). Because you deduct half of self-employment tax before calculating the contribution, the effective rate is approximately 20% of net profit before that deduction. The IRS provides a worksheet in Publication 560 for the precise calculation.

## Frequently asked questions

How much can a self-employed person contribute to a SEP IRA?

A self-employed individual can contribute up to 25% of their net self-employment income, up to $72,000 for 2026. Net self-employment income is your business profit minus the deductible portion of self-employment tax, effectively about 20% of gross net profit. A sole proprietor with $200,000 in net self-employment income could contribute up to $40,000.

Can an employee with W-2 income open a SEP IRA?

A SEP IRA is an employer-sponsored plan. An employee cannot open one themselves, but their employer can establish a SEP and contribute on their behalf. Solo business owners with no employees often choose SEP IRAs because they are simpler to administer than 401(k) plans and allow higher dollar contributions at lower income levels relative to solo 401(k)s.

Is there a SEP IRA catch-up contribution for those over 50?

No. Unlike traditional and Roth IRAs or 401(k) plans, SEP IRAs do not have a catch-up contribution for workers age 50 or older. The primary limit applies regardless of age. The limit is 25% of compensation up to $72,000 (2026), so high earners can still contribute substantially without a catch-up.

## Cite This Page

If you reference this table in your own work, use the following citation format and add the date you accessed it:

> Swoopr Editorial Team. (2026). *SEP IRA Contribution Limits by Year*. Swoopr Investment. [https://www.getswoopr.com/tables/retirement/sep-ira-contribution-limits/](https://www.getswoopr.com/tables/retirement/sep-ira-contribution-limits/)

Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised.

## References

- [IRS: SEP IRA Contribution Limits](https://www.irs.gov/retirement-plans/sep-ira-contribution-limits)

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