SARSEP Contributions

[Guest Cindyd]

Can personal, tax-deductible contributions be made to SARSEPS (in addition to the salary deferrals?)

[Appleby]

Yes.

For this purpose, the rules are similar to that of a regular SEP, i.e. the SEP is just a traditional IRA, to which the employer may make SEP contributions. Therefore, an individual who is eligible to make a traditional IRA contribution may make that contribution to his/her SEP IRA. Note: The ability to make the contribution is not affected by the individual’s eligibility to deduct the contribution.