USA SEP IRA Question for Recently Formed S-Corp


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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!
 
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You need to apply for a SEP IRA (forget offhand form #) with S Corp as the employer.
It will be separate and apart from the one you already have. Ask investment person if
rollover is possible to combine if you wish.
S Corp makes the contributions based on your salary and it's a corporation tax deduction. Doesn't effect your personal tax return.
Contributions need to be paid in by S corp filing date (including extensions)
 
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Thank you. That is what I thought based on some research, but it is a little confusing and wanted to hear what others had to say.
 

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