SEP IRA Contribution Limit 2026
Updated for the 2026 tax year · Last updated June 13, 2026
Maximum contribution
$72,000
2026 · up from $70,000 in 2025
| Limit | 2026 | 2025 |
|---|---|---|
| Maximum contribution | $72,000 | $70,000 |
| Compensation percentage cap | 25% | 25% |
| Minimum compensation to participate | $800 | $750 |
What changed for 2026
The SEP IRA maximum rose to $72,000 for 2026, tracking the 415(c) defined-contribution limit. Your actual cap is the lesser of 25% of compensation or $72,000, so you need around $288,000 of comp to reach the dollar maximum.
How it works
- •SEP IRAs are funded entirely by the employer (or by self-employed individuals on their own behalf).
- •For the self-employed, the effective contribution rate is about 20% of net self-employment income (after the deduction for half of SE tax), not a full 25%.
- •There is no catch-up contribution for SEP IRAs, regardless of age.
- •Contributions are flexible year to year — you can skip a year or vary the amount.
SEP IRA Contribution Limit 2026 FAQ
What is the SEP IRA contribution limit for 2026?
For 2026 it is the lesser of 25% of compensation or $72,000 (up from $70,000). You need roughly $288,000 of compensation to hit the $72,000 ceiling.
How much can a self-employed person put in a SEP IRA?
About 20% of net self-employment income (after deducting half of self-employment tax), up to $72,000 for 2026.
Is there a SEP IRA catch-up for those over 50?
No. SEP IRAs do not offer an age-based catch-up contribution.
Related 2026 limits
See all calculators and limits on the retirement & tax hub.
Source: IRS Notice 2025-67 (415(c) limit). For informational purposes only, not tax advice.