Appendix-- Rate Table, Rate Worksheet, and Deduction Worksheet for Self-Employed Individuals With Qualified or SEP Plans As discussed earlier under Simplified Employee Pension (SEP)and Qualified Plans (Keogh Plans), if you areself-employed, you must use the following rate table or rate worksheetand deduction worksheet to figure your deduction for contributions youmade for yourself to a SEP-IRA or qualified plan. First, use either the rate table or rate worksheet to find yourreduced contribution rate. Then complete the deduction worksheet tofigure your deduction for contributions. Caution: The table and the worksheets that follow apply only tounincorporated employers who have only one defined contribution plan,such as a profit-sharing plan. A SEP plan is treated as aprofit-sharing plan. Rate table for self-employed.If your plan's contribution rate is a whole number (for example,12% rather than 12 1/2%), you can use the following tableto find your reduced contribution rate. Otherwise, use the rateworksheet provided later. First, find your plan contribution rate (the contributions ratestated in your plan) in Column A Albergo Espanaof the table. Then readacross to the rate under Column B. Enter the rate fromColumn B in step 1 of the Deduction Worksheet forSelf-Employed. Rate Table for Self-Employed Column A Column B If the Plan Contri- Your bution Rate Is: Rate Is: (shown as %) (shown as decimal)     1 .009901     2 .019608     3 .029126     4 .038462     5 .047619     6 .056604     7 .065421     8 .074074     9 .082569     10 .090909     11 .099099     12 .107143     13 .115044     14 .122807     15* .130435*     16 .137931     17 .145299     18 .152542     19 .159664     20 .166667     21 .173554     22 .180328     23 .186992     24 .193548     25* .200000* *The deduction for annual employercontributions to a SEP plan or a profit-sharing plan cannot be morethan 13.0435% of your net earnings (figured without deductingcontributions for yourself) from the business that has the plan. Ifthe plan is a money purchase plan, the deduction is limited to 20% ofyour net earnings. Example.You are a sole proprietor and have employees. If your plan'scontribution rate is 10% of a participant's compensation, your rate is0.090909. Enter this rate in step 1 of the Deduction Worksheetfor Self-Employed. Rate worksheet for self-employed.If your plan's contribution rate is not a whole number (forexample, 10 1/2%), you cannot use the Rate Table forSelf-Employed. Use the following worksheet instead. Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (10 1/2% = 0.105)            2) Rate in line 1 plus 1 (0.105 + 1 =1.105)            3) Self-employed rate as a decimal rounded to atleast 3 decimal places (line 1 line 2)            Portion of Form 1040 and Portion of Schedule SE Figuring your deduction.Now that you have your self-employed rate from either the ratetable or rate worksheet, you can figure your maximum deduction forcontributions for yourself by completing the following worksheet. Deduction Worksheet for Self-Employed Step 1  Enter your rate from the accommodation in BremenRateTable for Self-Employed or Rate Worksheet forSelf-Employed            Step 2  Enter your net earnings (net profit)from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ(Form 1040); line 36, Schedule F (Form 1040); or line 15a, ScheduleK-1 (Form 1065)            Step 3  Enter your deduction forself-employment tax from line 27, Form 1040            Step 4  Subtract step 3 from step 2 andenter the result            Step 5  Multiply step 4 by step 1 and enterthe result            Step 6  Multiply $160,000 by your plancontribution rate. Enter the result, but not more than $30,000            Step 7  Enter the smaller of step 5 or step6. This is your maximum deductible contribution. Enter yourdeduction on line 29, Form 1040            Example.You are a sole proprietor and have employees. The terms of yourplan provide that you contribute 10 1/2% (.105) of yourcompensation and 10 1/2% of your participants'compensation. Your net profit from line 31, Schedule C (Form 1040) is$200,000. In figuring this amount, you deducted your common-lawemployees' compensation of $100,000 and contributions for them of$10,500 (10 1/2% x $100,000). Your self-employment taxdeduction on line 27 of Form 1040 is $7,180. See the filled-inportions of both Schedule SE (Form 1040) and Form 1040, later. You figure your self-employed rate and maximum deduction foremployer contributions you made for yourself as follows. Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (10 1/2% = 0.105)      0.105 2) Rate in line 1 plus 1 (0.105 + 1 =1.105)      1.105 3) Self-employed rate as a decimal rounded to atleast 3 decimal places (line 1 line 2)     0.0950 Deduction Worksheet for Self-Employed Step 1  Enter your rate from the RateTable for Self-Employed or Rate Worksheet forSelf-Employed     0.0950 Step 2  Enter your net earnings (net profit)from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ(Form 1040); line 36, Schedule F (Form 1040); or line 15a, ScheduleK-1 (Form 1065)   $200,000 Step 3  Enter your deduction forself-employment tax from line 27, Form 1040      7,180 Step 4  Subtract step 3 from step 2 andenter the result    192,820 Step 5  Multiply step 4 by step 1 and enterthe result     18,318 Step 6  Multiply $160,000 by your plancontribution rate. Enter the result but not more than $30,000     16,800 Step 7  Enter the smaller of step 5 or step6. This is your maximum deductible contribution. Enter yourdeduction on line 29, Form 1040   $ 16,800