MODERATOR NOTE: See post dated 7-26-01 entitled "IRC 402(h) Exclusion Limit under EGTRRA"

I understand that EGTRRA - Economic Growth and Tax Relief Reconciliation Act of 2001 - amended Sec. 404(h), the deductibility limit for SEPs, but didn't amend Sec. 402(h), so the maximum contribution permitted is still 15%. In other words, a person could deduct up to 25% but can't make a contribution bigger than 15%.

Can anyone confirm this

I have been wondering about this same thing. I was reading an article on the 401K Cafe web site under the IRA section. This article said:

"For SEP-IRAs, the maximum annual contribution limits will change to the lesser of $40,000 or 100 percent of salary. Currently, the limit is the lesser of $35,000 or 15 percent of salary."

I am going to continue to look for a definitive answer other than this article. However, this looks promising.