Thomas2006
Mar 3 2009, 10:28 AM
A was employed by company and made 15,500 in elective deferrals in 2008 before losing job. A is self employed for remainder of 2008 and establishes a SEP. A, as employer (sole proprietor) contributes max amount to SEP in 2008 (25% of comp). Is this permissible?
Appleby
Mar 14 2009, 01:04 PM
Yes...as long as both companies are not related or affiliated...and it would be 20% of modified net profit
K2retire
Mar 14 2009, 04:48 PM
Slight variation -- company begins the year with a SAR-SEP left over from years ago. Mid year they switch to a 401(k) plan. Does the 402(g) limit cross plan types? What other sorts of limits do they need to be watching for?
Jim Chad
Mar 14 2009, 05:45 PM
The 402(g) limit is a per person per calendar year limit and yes, it does include SEP and 401(k)...... one $15,500 limit per person for 2008.
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