Guest LaRae Posted February 25, 2006 Share Posted February 25, 2006 Hi, I'm 53 years old and my company is an S corp with a SARSEP started in 1976. I am the only employee. I didn't pay myself w-2 wages last year because of the economy, but did have about $40,000 commission that the company received on the last day of the year. Here is the question.... Is the contribution to a SARSEP dependent on W-2 wages only? So if I didn't pay any W-2 wages... can I make a contribution to my SARSEP? Thanks in advance...LaRae Link to comment Share on other sites More sharing options...
Bill Presson Posted February 25, 2006 Share Posted February 25, 2006 Sorry, but S-Corp dividends aren't considered earned income. Unless you had W-2 income, you can't make a deductible contribution. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
Gary Lesser Posted February 26, 2006 Share Posted February 26, 2006 Consider placing the social security/SE tax savings into an investment account. Therein lies a plan. Link to comment Share on other sites More sharing options...
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