Justin

Thank you Larry, that helps. Just a follow up question. What wages do you use to calculate any limits on the contribution deductions? Do you use the calendar year wages? Or do you use the fiscal year wages?

I have a client with a SEP IRA plan that is maintained on a calendar year basis, however, my client has a 9/30 fiscal year end. How do I calculate the client's contribution deduction on his tax return? Do I deduct a percentage of his annual contributions (e.g. 75% of 2018 contributions)? Or do I simply deduct his annual 2018 contributions, regardless of the difference in fiscal year and SEP plan year? Thanks, Justin