Technical topics regarding tax preparation.
9-Oct-2019 2:56pm
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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?
9-Oct-2019 3:13pm
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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.pdfThis is so the ER cannot treat other employees differently by using another plan.
9-Oct-2019 3:18pm
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ah very good....interesting ...thank you!
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