SEP IRA


S

Sandy Jones

can u purchase SEP IRA if you operate a S CORP but not work
but only shareholder?
 
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H

Harlan Lunsford

Sandy said:
can u purchase SEP IRA if you operate a S CORP but not work
but only shareholder?
No.

A SEP IRA in this case is funded by the corporation and the
contributions are a percentage of the employee's salary.

Cheer$$,
Harlan Lunsford, EA n LA
Chief,
an S corp.
 
S

Sandy Jones

Harlan Lunsford said:
Sandy Jones wrote:
No.

A SEP IRA in this case is funded by the corporation and the
contributions are a percentage of the employee's salary.
If you are the sole owner and the only employee working for
your own corporation, and you make $30k in wages this year,
but the corp made a net profit of 400k, then the most you
can contribute to a SEP is .25 of $30k only?
 
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H

Harlan Lunsford

If you are the sole owner and the only employee working for
your own corporation, and you make $30k in wages this year,
but the corp made a net profit of 400k, then the most you
can contribute to a SEP is .25 of $30k only?
NO. the max contribution the CORPORATION (not you) can make
is .25 of 30k.

Cheer$$,
Harlan Lunsford, EA n LA
 

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