Discussion:SEP Contribution to employee
From TaxAlmanac
Revision as of 00:52, 16 March 2009
Discussion Forum Index --> Basic Tax Questions --> SEP Contribution to employee
Discussion Forum Index --> Tax Questions --> SEP Contribution to employee
Www.cpa1.biz (talk|edits) said: | 16 March 2009 |
| Almanacers,
A business I am dealing with needs to make a SEP contribution for their S corp for 2008. They are a husband and wife dentistry with some other employees. There is one employee that was hired in December 2005. I am reading the requirement for having to contribute to a SEP and it says that the employer must contribute to employee who has worked three of the preceding 5 years. Well, in December 2008, this employee will meet three years. Does this mean that if the employer makes SEP contributions, this one employee is going to have to be part of this contribution? Another part to this is let's say they dont want to contribute for 2008 because they have to contribute for this employee, can they contribute to a traditional IRA for both husband and wife? I know that if they are part of a retirement plan, they cannot contribute to a trad IRA if they pass the AGI thresholds but what if they dont contribute to the SEP for 2008. In effect, they would not be part of a retirement plan. Please advise. Thanks, Bj | |
