Participation in multiple SEPs

[Young Curmudgeon]

I just want to verify whether an individual has multiple SEP limits when working for multiple employers.

"A" is self-employed, earning $300,000 annualy and sponsors his own SEP making a maximum contribution of $51,000.

"A" is also an employee of non-related company X where he earns $200,000 in W2 compensation.

Company "X" also sponsors a SEP and contributes 25%.

Can "A" receive his $51,000 SEP contribution from his own company and an additional $50,000 SEP contribution from company "X"?

I know this is possible in qualified plans but the "individual" limit wording for SEPs makes me nervous. Thank you for your help!

[ETA Consulting LLC]

Yes. While is SEP has it's own 415 limit (25% or $51,000), this limit applies separately to each Employer. "Employer" means the sponsor and all related employers (Controlled groups, Affiliated Service Groups, or Management Groups).

Good Luck!