USA SEP IRA


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I've got a question in which I hope to get a few responses. I have gotten different ones from different accountants.
I am self employed for the majority of my jobs. I work about 3 jobs in the medical field for three different entities. I receive a 1099 for about 90% of my pay. I recently incorporated as an S corporation with my accountant. I mentioned to the accountant that my main goal was to fully fund my SEP IRA since I receive primarily 1099's. So, I have been funding it at about 40k plus per year. I got audited for 2012 and 2013. The IRS agent is stating that I am a statutory employee of the company. The accountant is disputing stating that I can both own the company and manage it. The issue is the SEP IRA. As a statutory employee, can I still fully fund a SEP IRA? One accountant told me that I cannot take the SEP as a deduction on my taxes, but since I am self employed, I can still fund the SEP fully. Any comments would be appreciated.
P
 
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you can fund the sep fully, but you cannot use the money from the company where you are a statutory employee. so for example, if the sep limit now is $53,000.00 for the year, and you are making 130,000 per year, but 110,000 comes from the stat company, then you would only be able to put 20,000 into the sep because you would need to dip into the 110,000 that comes from the stat job in order to fund the ira. do you understand? What you are better off doing is opening an S-Corp. I have a client who does what you do, I went through this with her, we resolved it this way.
 

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