Jump to content

SEP's for S-Corps in 2012


Recommended Posts

Has anyone heard of SEP's not being allowed for S-corporations in 2012?

A tax client has told his tax preparer that they were told by American Funds that S-corps will not be able to make contributions to a SEP in 2012. We're not sure if our client misinterpreted the information they received from Am. Funds or if it was communicated properly. Also, supposedly a letter is being mailed by the end of July regarding this to all Am. Funds clients.

Link to comment
Share on other sites

Has anyone heard of SEP's not being allowed for S-corporations in 2012?

A tax client has told his tax preparer that they were told by American Funds that S-corps will not be able to make contributions to a SEP in 2012. We're not sure if our client misinterpreted the information they received from Am. Funds or if it was communicated properly. Also, supposedly a letter is being mailed by the end of July regarding this to all Am. Funds clients.

At this point there have not been any changes to the tax code for retirement benefits that would take effect next year (other than minor provisions such as elimination of the charitable distributions from IRAs after 2011) although there are a lot of ideas floating around to reduce contributions to DC plans to raise revenue.

Of course the quick answer is to call American funds and see if they confirm the story.

mjb

Link to comment
Share on other sites

Perhaps the client misunderstood some generic statement that you have until the S-corp's 2011 tax return is filed in 2012 to establish an SEP, which is just the deadline for every year's contributions.

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...