SELF-EMPLOYED CONTRIBUTION OVERVIEW
01.Core Concepts
Self-employed (SE) persons calculation (Keogh Plans) • Step 1: Determine SE contribution rate • Step 2: Determine the SE tax • Step 3: Calculate the SE contribution • Step 1: Determine Self-employed Contribution Rate Contribution to other participants / (1 + contribution to other participants) Example – 25% contribution to employees 0.25/1.25 = 20% contribution for self-employed person