Questions tagged [sep-ira]
The sep-ira tag has no usage guidance.
35 questions
1
vote
1
answer
76
views
IRA options for a small amount of self-employment income
Most of my income comes from investments so I understand it is considered non-earned and is not eligible for IRA contributions. However, I have a small amount of self-employment income and would like ...
- 95
1
vote
1
answer
81
views
Is it permissible to make contributions to a SEP-IRA in excess of the current year's maximum and allocate them to the following year?
Is it permissible to make contributions to a SEP-IRA in excess of the current tax year's maximum allowed amount if those excess contributions are allocated to the following tax year?
- 151
0
votes
1
answer
84
views
SEP IRA eligibility criteria?
I am trying to determine if I can establish and contribute to a SEP IRA. Here are what I think to be the relevant details and questions.
I receive a W-2 from my day job employer
I have side income ...
- 345
1
vote
1
answer
61
views
What does this SEP contribution language from IRS mean?
The IRS website has the following:
For a self-employed individual, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to $61,000 ...
- 151
0
votes
1
answer
384
views
Solo 401k contribution limit for high Schedule K-1 income
This is really two questions. For this post, I'm going to use a very simple example.
I have a single-member LLC with an S-corp election. I am the only employee.
In 2023, my W2 wages were $66,000. My K-...
- 9
1
vote
1
answer
77
views
How to understand "if contributions were made to a SEP IRA, they could potentially reduce the amount you can contribute to your Roth IRA" message?
I received the following message from Fidelity (with whom I have both Roth and SEP IRA accounts):
NOTE: SECURE 2.0 Act was signed into law on December 29, 2022. For
2023, if contributions were made ...
- 1,322
4
votes
3
answers
6k
views
Setting up an SEP-IRA for my single member LLC (taxed as an S-Corp)
I've set up a single member LLC (taxed as an S-Corp) for my self-employment work. I'm hoping to have the S-corp contribute some of my salary to an SEP-IRA which, as I understand it, means the S-corp ...
- 141
0
votes
2
answers
905
views
Can I treat a SEP contribution made in 2021 as partly for 2020 and partly for 2021?
I recently discovered I miscalculated my max contribution to my SEP for 2019 and 2020 so I MAY have excess contributions in 2019 and 2020. See What is the contribution limit for self-employed person ...
- 433
3
votes
1
answer
1k
views
What is the contribution limit for self-employed person to their SEP-IRA?
For a few years I've been contributing to a SEP-IRA for myself as the sole employee/employer. Until this year, I have been calculating my max contribution as 25% of my total SE income. I realize that ...
- 433
3
votes
0
answers
51
views
can SEP contribution be made more than one time for same year
Can a small employer make contribution to SEP similar to 401K with each pay check/1099 or at end of the year for previous year. So for example for 2021 contributions, can one give 10% in January 2022, ...
- 1,247
0
votes
1
answer
55
views
When a position in a United States "SEP" account is sold are there any tax consequences if the sale proceeds remain in the SEP's deposit account?
I wanted to liquidate a particular position in my SEP account and reinvest the proceeds in another mutual fund to be held in the SEP. When I went to do so on the website of the trading company, there ...
- 151
1
vote
1
answer
41
views
2nd Job on W2 eligible for SEP-iRA?
I have a second job working on W2 as a contractor, am I eligible to invest in a sep-iRA? Both my first and second employer offer 401K's. How does this all effect my options for investing in a sep-iRA?
...
- 11
0
votes
1
answer
886
views
Backdoor Roth IRA conversion while owning SEP-IRA as well
I have a SEP-IRA from my consulting years, many years ago (I haven't contributed to it in years but it does have a balance).
I wanted to setup a backdoor Roth IRA conversion by creating Traditional ...
- 103
6
votes
1
answer
950
views
May I use my IRA account to pay off "parent plus" loans?
My spouse and I are 60 yrs old.
We paid for our first 3 children's higher education (in state 4 yrs $100,000) and launched them into adulthood without student loan debt, with the understanding they ...
- 61
-1
votes
1
answer
170
views
Reduce Self Employment Tax
Thanks for looking into my post.
I am an independent contractor and I don't have any LLC or company.
Currently, I am paying 26% on the self employment tax even after contributing to SEP IRA.
Is ...
- 11
1
vote
1
answer
100
views
Traditional IRA and SEP IRA at the same time
I am self employed through my LLC and I am also employed by a company via W2
What would be my contribution limits to SEP IRA and Traditional IRA?
Are my SEP IRA contribution limits separate from my ...
- 111
1
vote
1
answer
188
views
Roth conversion: why is cost basis the basis of original SEP-IRA investment?
I just converted some money in a SEP-IRA to a Roth IRA. The value of the fund that money was invested in was down about 10% from when I initially invested in the SEP-IRA. Once the transaction was ...
- 1,322
2
votes
1
answer
177
views
Can I avoid the penalty if I rollover a SEP IRA to a Roth and then pull out the money?
I have some SEP-IRA money that I am considering rolling over to a Roth IRA. Since Roth contributions can be pulled out without penalty, is it possible to roll over a SEP-IRA to a Roth IRA then ...
- 1,322
1
vote
2
answers
78
views
SEP IRA Contribution
I opened an SEP IRA account with chase and transferred $500.
Do I need to buy bonds or stocks using this amount this year itself or can I buy bonds after 2 years?
- 43
2
votes
0
answers
75
views
Do I need to complete SEP IRA deposit before April 15 (United States)?
On my 2018 U.S. tax return (already filed) I indicated that I would contribute a certain amount to a SEP IRA.
I just initiated a deposit in the correct amount to my SEP account at Vanguard, but funds ...
- 21
3
votes
0
answers
81
views
Can You Receive Both a Simple IRA and SEP IRA?
I am the employee of two companies. At one company, I receive a SEP IRA. I know that SEP IRAs are not included in the standard annual elective deferral limit. At the second company, I have the ...
- 671
5
votes
1
answer
277
views
Avoiding self-employment tax and maximizing retirement contributions
This is a follow-up to the answer to this question.
Suppose you have a single-member LLC that makes $200k and that you would like to contribute the annual maximum of $54k to a SEP IRA.
Is it ...
- 7,571
2
votes
0
answers
58
views
SEP contributions when part of two LLCs
I am the sole member of first LLC, and I've been doing SEP contributions for several years now.
In 2018, I want to start a second LLC where there will be a second member (let's call him John) who ...
- 7,571
1
vote
2
answers
202
views
2 401k's and a SEP-IRA
I have been a contractor for 9 months of this year where I earned 1099 income. I am an employee with a company that has a 401k. I am over 50 so I can contribute $24,000 to the company 401k, and the ...
- 111
5
votes
1
answer
586
views
Adding spouse to single member LLC to reduce taxes
Suppose husband has a single member LLC, has a SEP IRA, and makes more than enough to max out annual SEP contributions.
I'm curious if the wife could be added to the LLC to allow the wife to also ...
- 7,571
2
votes
2
answers
434
views
SEP IRA payments for single-member LLC
I've got a single-member LLC so it is all pass through income for taxation.
I've created a SEP IRA. When I make contributions to the SEP IRA, should it come from the bank account of my LLC or my ...
- 7,571
0
votes
1
answer
163
views
Roth Backdoor and Self Employment Taxes
I am currently a graduate student in software while doing a self employed contracting gig. As such, I've been using primarily my SEP IRA and Traditional IRA accounts to avoid the heavy self employment ...
1
vote
1
answer
2k
views
SEP-IRA doing 1099 work on the side of a W2 employee job
I am trying to figure out how much I could put into a SEP-IRA and withhold for taxes.
I am estimating my income from the W2 job to be 320,000 with deductions for North Carolina state income tax, ...
- 11
1
vote
2
answers
115
views
Form 5498 for 2015 : does it show 2015 or 2014 contributions to IRA?
I just recently received at Form 5498 from my broker for my IRA contributions. The form is for 2015 and it shows an amount that I attributed to my 2014 return.
Should this amount be on the 5498 for ...
- 3,973
2
votes
1
answer
87
views
SEP IRA across two tax years
I'm going to create an SEP-IRA for 2015, as I had some self employed income that contributed to a high marginal rate tax burden for that year.
However, the amount I'm allowed to contribute from ...
- 35.9k
2
votes
0
answers
90
views
Make a SEP contribution to a traditional IRA
I have a traditional IRA with Vanguard that originated as a 401k rollover (so they call it a Rollover IRA). This year I have a lot of self-employment income, and I am qualified to make a SEP IRA ...
- 133
1
vote
1
answer
550
views
Can I contribute to a SEP-IRA and a Solo 401(k) for the same business?
This money.SE question and this BogleHeads forum thread both seem to ask about whether or not you can contribute to both a SEP-IRA and a Solo 401(k) at the same time for the same business. I'm not ...
- 922
1
vote
1
answer
417
views
What is the contribution limit for a SEP-IRA?
I have a small business that will file taxes as an S-Corp for the year of 2015. The company has 1 employee (me). I pay myself a decent salary. In order to bring the company's taxable revenue down, I ...
- 145
5
votes
1
answer
353
views
What does “separate accounts” mean when rolling over into a 457(b)?
I have a SEP-IRA from an old, part-time job that I had in college with about $120.00 in it. I just opened a 457(b) with my state job. I'd like to roll that $120.00 over into the 457(b). According to ...
- 103
1
vote
0
answers
41
views
How to book past year's transaction, performed in the current year?
I have a small business. I contributed $1000 towards SEP IRA for year 2014. However, the transaction was done in January of 2015 using the retained earnings of 2014. Obviously, this money is tax ...
- 111