TaxProTalk.com

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?

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.

ah very good....interesting ...thank you!