OT: SEP-IRA Question

[RUSK97]

I'm a sole-proprietor and have a SEP-IRA set up. My 2015 revenue consisted of my company's profit plus stock options from a previous job which I exercised in 2015.

Does anyone know whether my max contribution to the SEP is based on only my company's profit, or can I include the net earnings from the stock options as well?

 

[Lionguy32]

Your SEP contribution is based on self-employment earnings. Your stock option earnings are most likely reported on a W-2.

 

[RUSK97]

Your SEP contribution is based on self-employment earnings. Your stock option earnings are most likely reported on a W-2.

Everyone tells me they should be on a W-2, but it's a foreign company and they ended up issuing a 1099-MISC. So I ended up with two 1099-MISC. Does that make a difference?

 

[THERAC]

The earnings from working in your business is the income you use.

25% of the employee's compensation (or, for you, 20% of your net earnings from self-employment).

 

[Lionguy32]

Everyone tells me they should be on a W-2, but it's a foreign company and they ended up issuing a 1099-MISC. So I ended up with two 1099-MISC. Does that make a difference?

If you are reporting the options as self-employment income, then you can use it toward your SEP contribution.