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W2 income from one company used to fund SEP (?)


AKconsult
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I have a CPA who is telling me he wants a "sophisticated" plan design option for a doctor who is an employee of a practice and also has his own business on the side with self-employment income.  The side business has a net loss, so I told him there is no income to take a deduction on for the SEP, therefore no way to fund a SEP.  The CPA thinks he can use some of the doctor's W2 income to fund a SEP contribution (?)  This is not permissible, right?  I am just questioning it because the person asking about this is a CPA so...

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5 hours ago, AKconsult said:

I have a CPA who is telling me he wants a "sophisticated" plan design option for a doctor who is an employee of a practice and also has his own business on the side with self-employment income.  The side business has a net loss, so I told him there is no income to take a deduction on for the SEP, therefore no way to fund a SEP.  The CPA thinks he can use some of the doctor's W2 income to fund a SEP contribution (?)  This is not permissible, right?  I am just questioning it because the person asking about this is a CPA so...

Being a CPA does not eliminate the possibility of also being an idiot!

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

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