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Can SEP contributions be permissively aggregated for purposes of cross testing? I.e., Average Benefit Percentage Test, Average Benefit Test, and Gateway Minimum? The plan sponsor has both a SEP and a profit sharing plan in 2020 and the SEP is on an approved individually designed document. Thank you in advance.

Can a 2019 Contribution be made to a SEP that has not yet been esablished? We intend to set up a plan for an employee before July 15, 2020 and make a contribution. Can we postpone to OCT 2020 if we elect an extension? Comments? Thnak you! Ken Phillips

Can a US citizen working in the UK as a sole trade (their version on sole proprietor) set up a 401k or SEP based on his UK income? Per the US/UK totalization agreement, the income is not subject to Social Security, but is reported on Sch.C of his 1040. I know we only use wages that are subject to social security but this is an odd situation.

Good morning to all, I have been asked to post the following question from a CPA referral source: "Facts: Individual owns 100% of an S corporation. Only employees are husband and wife. They have a solo 401K plan. They both maxed their elective deferrals and the employer contributed max profit sharing. Husband also owns another business with no employees that is taxed as a sole proprietorship Sole proprietorship is profitable in 2018. Can they also do a SEP for the sole proprietorship?" I have no further information than what is shown in the inquiry. Thank you in advance to anyone who has had to address this before and knows what is permissible.

Physician works for hospital as W-2 employee and maxes out in the hospital 401(k); same physician also operates small clinic as Sch C using off-duty nurses (1099 workers) and has SE income from Sch C. Can physician establish SEP for himself for SE income from Sch C? if yes, do 1099 workers have to be included in SEP? Is physician limited on SEP contribution due to participation in 401(k) at hospital? Thanks!

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

I hope I can find an answer to the following scenario: A partnership establishes a SEP for the partners and the plan calls for the partnership to contribute the maximum allowable amount for each partner. Partnership contributes 20% to each of the five partners. However, each partner has differing unreimbursed partner expenses that may reduce the max contribution amount on an individual partner basis. These UPE are not reported to the partnership. I think that each partner is required to determine if they have excess contributions and remove those contributions and associated earnings from their account. However, this can result in differing contribution rates for the individual partners so that one partner might end up with a 7% contribution rate and another maxes out his contribution at 20% because he had no UPEs. Is it the responsibility of each individual partner to remove the excess contributions caused by the UPEs or is the partnership somehow responsible for recalculating the percent contribution based upon the individual partner UPES to determine the lowest percentage allowed that would equalize all the partners percentages. It's a tough question for the partnership, but does occur fairly frequently. I would appreciate any guidance from the group.

Facts: Husband and wife each own 100% of separate companies (have a child under 21 so they are related). His is a Sch C, hers is an S-Corp. The husband current contributes to a SEP based on his Sch C income (the max 20%). The wife set up a 401k PS Plan through her S-corp and contributes the max to it. Issue: Are you allowed to have SEP and 401k in same year? If you are not allowed to have both, we thought we would just have the husband contribute to the wife's 401k plan since they are related and figured he could get the same 20% in the 401k PS Plan. Any issues with the above? Thanks in advance for your help.

I have a single owner LLC that files as a sole proprietorship. The LLC has been in existence for 3 years. It purchased the assets of a going business 2 years ago. He had no employees prior to the purchase. If the qualifications are 3 out of the last 5 years, is the owner the only qualified person? If so is it top heavy? If it is top heavy, and he wants to contribute 25 % for himself, how much does he contribute for employees and do they have to meet the qualifications of a participant or is it for all employees that worked? He does have 1 employee that came from the purchased company that is still with him.

Client opened a SEP with bank in 2009. Client does not have original paperwork and claims to not have prepared SEP plan doc. She funded in 2009 - 2013 (in 09-10 based on schedule c, from 2011 on she incorporated and based contributions on w-2). She hired an employee in 2014 who earned $65,000. Files taxes on 1120s and is on extension. Wants to fund for 2014 but wants to exclude employee. Can client exclude the employee from the plan? If not, can client start a new and separate SEP for employees other than owner?

Can a small business have one SEP for the owner at, say 20%, and another SEP for the employees, at say 10%? Either way, yes or no, can anyone provide a link to a document from an authoritative source? (I can just see myself in an IRS audit - "Well someone on the internet told me...") Thanks in advance

Can you aggregate a SEP and Cash Balance plan together?