Net profits required in order to make a SEP contribution?

[Guest fusiuser]

Do you have to have net profits in order to make a SEP cnt. If a farmer has and is showing a net loss can he make his SEP cnt? In a profit sharing plan can elect if you want to limit the cnt to net profits but thats not an option in a SEP.

[Guest Paul McDonald]

You have to have net earnings from self-employment in order to calculate a contribution amount. If you have a loss, you have nothing to take a deduction from.