SEP IRA Contribution Deadline and 2026 Limit: $72,000 Max
Figures checked November 7, 2026 against primary sources
A SEP IRA contribution is due by the due date, including extensions, of your federal income tax return for the year, according to the IRS. You can also open the plan as late as that date. For 2026, the contribution cannot exceed the lesser of 25% of pay or $72,000 per person.
Table of Contents
The Deadline
The IRS says employer contributions to a SEP "must be made by the due date (including extensions) for filing your federal income tax return for the year." Tell your provider which year the deposit is for.
The same date applies to setting the plan up. The IRS says you can set up a SEP for a year "as late as the due date (including extensions) of your business income tax return for the year." Do not wait for the last day: a late or mislabeled deposit is hard to fix afterward.
SEP IRA Limits 2026
| Item | 2025 | 2026 |
|---|---|---|
| Maximum contribution per person (lesser of 25% of pay or) | $70,000 | $72,000 |
| Pay counted per person (compensation limit) | $350,000 | $360,000 |
| Pay an employee must earn to be covered | $750 | $800 |
Source: IRS Notice 2025-67, retrieved Nov. 7, 2026.
At 25% of pay, the $72,000 cap is reached at $288,000 of pay. Below that, the 25% rule is the limit that binds. The limits are per person, so an owner and each covered employee have their own.
If You Are Self-Employed
The 25% rate applies to an employee's pay. For you, the IRS uses "20% of your net earnings from self-employment." IRS Publication 560 has the special computation for your own contribution. For plan trade-offs see retirement plans for the self-employed.
Sources & Methodology
- 2026 and 2025 limits: IRS Notice 2025-67, retrieved Nov. 7, 2026.
- Deadline, setup date and the 25% and 20% rules: IRS, Simplified Employee Pension plan (SEP) (page updated May 7, 2026) and IRS Publication 560, retrieved Nov. 7, 2026.
The $288,000 figure is our arithmetic ($72,000 divided by 25%). IRS limits for 2027 are not yet announced, so this page lists 2026 only. Confirm with your plan provider and a tax professional before you deposit.
FAQ
What is the SEP IRA contribution deadline?
The due date of your federal income tax return for the year, including extensions, per the IRS.
What is the SEP IRA limit for 2026?
The lesser of 25% of compensation or $72,000 per person. Compensation counted is capped at $360,000.
Can I open a SEP IRA after the year ends?
Yes. The IRS allows setup as late as the due date, including extensions, of your business income tax return for the year.
Who must be covered?
Generally eligible employees who meet the plan's rules. The IRS pay test is $800 in 2026, up from $750.
General information, not financial advice.
