Jump to content

Partner SEP Contribution


Recommended Posts

Someone would like to set up a SEP for their business for 2018 (by 4/15/19.)  It is 2 partners only and one partner wants to max out SEP but other one wants to put in less.  Is there a waiver form or something that can be done to have different contribution amounts since they are both partners and no non owner employees?  Thank you.

Link to comment
Share on other sites

1 hour ago, shERPA said:

No.  SEP contribution must bear a uniform relation to compensation. 

Awww, maybe permitted disparity to the rescue? Unlikely. 

Link to comment
Share on other sites

Good thought, but unlikely. The IRS Form 5305 doesn't allow integration with SS. Which doesn't necessarily mean it's not allowed at all (I don't have a cite to the SEP rules to know). 

https://www.irs.gov/pub/irs-pdf/f5305sep.pdf

SSI also doesn't help if the partners have similar comp. They would end up with the same amounts. 

I'm a stranger on the internet. Nothing I write is tax or legal advice. 

I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say?

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
×
×
  • Create New...