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SEP and a 401k

Technical topics regarding tax preparation.
#1
zl28  
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22-Apr-2014 10:27pm
Location:
usa
Have a client who set up a SEP and contributed 10k on his 80k salary

and gave 15k to his 401k all in the same year.

none of the 15k was the match or profit sharing.

i don't think that should be a problem....agree?
 

#2
Doug M  
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22-Apr-2014 1:09pm
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Oregon
There could be a problem. If you use the model SEP adoption agreement the IRS provides (most people use 5305-SEP), you cannot maintain another qualified plan. See bottom of page 1 of the instructions.

https://www.irs.gov/pub/irs-pdf/f5305sep.pdf

This is so the ER cannot treat other employees differently by using another plan.
 

#3
zl28  
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934
Joined:
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Location:
usa
ah very good....interesting ...thank you!
 


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