How old do you have to be?

[K-t-F]

A client has a child that receives income on a 1099... she turned 16 in 2004. If she files as a sole proprietor and files a schedule C, can she have a plan?

[mbozek]

Any sole prop can a SEP by the due date for filing a tax return. ( HR-10 plan has to be established by 12/31/04). However a minor may need a guardian to sign the legal documents necessary to establish the plan. Given the low tax rates and the lock up period for retirement assets it might be better for the client to pay taxes and invest in capital assets which have a max tax rate of 15%.