sep ira


O

Oradba Linux

Who can open a SEP IRA?

Can this contribution be more than the IRS limit of 14,000$
towards IRA?

Can all the amount be tax deductible ?

Can you have a SEP IRA and also be part of the company
sponsored 401k plan in the same year?

Thanks
 
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P

Phil Marti

Oradba Linux said:
Who can open a SEP IRA?
The self-employed and small employers. I have a feeling
this answers all your questions, but if not, please provide
information about your situation
 
T

Thomas Healy

Oradba Linux said:
Who can open a SEP IRA?

Can this contribution be more than the IRS limit of 14,000$
towards IRA?

Can all the amount be tax deductible ?

Can you have a SEP IRA and also be part of the company
sponsored 401k plan in the same year?
People who have self-employment income and employees of
businesses that have established a SEP can open SEP-IRAs.
The amount that can be put into a SEP is 20% of
self-employment income or 25% of wages, limited to $41,000
for 2004. And yes, this is in addition to a 401(k).
 
O

Oradba Linux

People who have self-employment income and employees of
businesses that have established a SEP can open SEP-IRAs.
The amount that can be put into a SEP is 20% of
self-employment income or 25% of wages, limited to $41,000
for 2004. And yes, this is in addition to a 401(k).
If i was self-employed during the year 2004 and also
employed by another firm and participated in their 401K
plan. I did not max out the 401k. I am self employed right
now. Can i put 20% of the income that i made in 2004 now
into a SEP IRA that i opened in 2004 before April 15 2005?
OR If i have not put into a SEP IRA then can i not put now ?
 
P

Phil Marti

Oradba Linux said:
If i was self-employed during the year 2004 and also
employed by another firm and participated in their 401K
plan. I did not max out the 401k. I am self employed right
now. Can i put 20% of the income that i made in 2004 now
into a SEP IRA that i opened in 2004 before April 15 2005?
OR If i have not put into a SEP IRA then can i not put now ?
You have until the extended due date of your return to make
SEP contributions for 2004. Remember that these
contributions are based solely on your earnings from
self-employment (Schedule C). Your 401(k) contributions
have no bearing on this.

See IRS Publication 560 to calculate your maximum SEP
contribution.
 
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T

Thomas Healy

Oradba Linux said:
If i was self-employed during the year 2004 and also
employed by another firm and participated in their 401K
plan. I did not max out the 401k. I am self employed right
now. Can i put 20% of the income that i made in 2004 now
into a SEP IRA that i opened in 2004 before April 15 2005?
OR If i have not put into a SEP IRA then can i not put now ?
It's a little more complex than that. The formula is
actually 20% of your (Schedule C net income minus one-half
of the self-employment tax associated with that income). You
can establish your SEP-IRA anytime up to April 15 (October
15 if you put your return on extension).
 
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