Discussion:SEP-IRA Plan for Statutory Employee
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(Difference between revisions)
| Revision as of 03:01, 31 May 2008 RoyDaleOne (Talk | contribs) (401(c), in part) ← Previous diff |
Revision as of 03:43, 31 May 2008 Taxwizard (Talk | contribs) (The statutory em) Next diff → |
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| Why is there no SE income from the Schedule C?}} | Why is there no SE income from the Schedule C?}} | ||
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| + | {{ForumReplyPost|UserID=Taxwizard|Date=31 May 2008|Text=The statutory employee is a full-time life insurance salesman. The reason he has no earnings on Schedule SE is that all of his earnings on Schedule C are subject to FICA/Medicare withholding.}} | ||
Revision as of 03:43, 31 May 2008
Discussion Forum Index --> Advanced Tax Questions --> SEP-IRA Plan for Statutory Employee
Discussion Forum Index --> Tax Questions --> SEP-IRA Plan for Statutory Employee
| 30 May 2008 | |
| Lacerte will not compute a SEP-IRA deduction for my client since he has no self-employment earnings. Lacerte assures me that my client is not eligible for a SEP-IRA deduction -- even though his Schedule C net is over $300,000. Is Lacerte right about this? | |
| 30 May 2008 | |
| Hi does the "statutory employee" participate in the employer plan? Is his W-2 retirement box checked? If so he probably cannot have one of his own. Havent looked it up but thats my guess. bye | |
| 31 May 2008 | |
| Lacerte is absolutely wrong about this. For purposes of retirement plan and self-employed health insurance deductions, a statutory employee’s SE income is his schedule C net. See Sec. 401(c)(2)(A)(iii). | |
RoyDaleOne (talk|edits) said: | 31 May 2008 |
| 401(c), in part states that:
(i) only with respect to a trade or business in which personal services of the taxpayer are a material
income-producing factor,
The posting states that is no SE earnings, thereby, indicating that personal service was not a material income peoducing factor on the Schedule C. Maybe, a passive activity relative to the Schedule C by the SP. Why is there no SE income from the Schedule C? | |
| 31 May 2008 | |
| The statutory employee is a full-time life insurance salesman. The reason he has no earnings on Schedule SE is that all of his earnings on Schedule C are subject to FICA/Medicare withholding. | |
