I have been a self-employed contractor for several years, getting paid as a consultant through 1099s. During this time, I have been contributing to an SEP IRA I had set up for myself. A few months ago, I set up an S Corporation, and in 2021 plan on paying myself a reasonable salary through the corporation.
I want to continue to invest for my retirement, but am not sure now how to handle the SEP.
1. Since I am technically now an employee (W2), do I contribute personally to the SEP, or can the corporation contribute to the existing SEP for me?
2. Or, does the company need to set up a separate SEP IRA and start contributing to it for me?
3. Also, from a payroll perspective, would this be considered a contribution by the corporation rather than a deduction for me personally?
4. Finally, if the corporation is contributing to an SEP IRA, and if I take distributions from the company that are non wage distributions, can I invest in any other tax-benefited retirement plans? Or is the SEP IRA all I can do?
I have an accountant that I will be reaching out to, but I wanted to try and understand better before I do. Thanks!
I want to continue to invest for my retirement, but am not sure now how to handle the SEP.
1. Since I am technically now an employee (W2), do I contribute personally to the SEP, or can the corporation contribute to the existing SEP for me?
2. Or, does the company need to set up a separate SEP IRA and start contributing to it for me?
3. Also, from a payroll perspective, would this be considered a contribution by the corporation rather than a deduction for me personally?
4. Finally, if the corporation is contributing to an SEP IRA, and if I take distributions from the company that are non wage distributions, can I invest in any other tax-benefited retirement plans? Or is the SEP IRA all I can do?
I have an accountant that I will be reaching out to, but I wanted to try and understand better before I do. Thanks!