Deductibility Limit for SEPs

[Guest Joe Vasko]

The deductibility limit for SEP Plans is going to 25% in 2002, but I heard that the individual contribution limit under code section 415 remains at 15%. How can this be?? Looking for some clarification.

Thanks,

Joe

[Belgarath]

That's correct. Although I believe congressional intent was clearly to increase, EGTRRA didn't do it. So absent a technical corrections change or some other official IRS guidance, we're stuck with the 15% deduction limit.

[Appleby]

Gary Lesser is on the case- see the link below

http://benefitslink.com/boards/index.php?showtopic=12396