Guest Thomas2006 Posted March 3, 2009 Posted March 3, 2009 A was employed by company and made 15,500 in elective deferrals in 2008 before losing job. A is self employed for remainder of 2008 and establishes a SEP. A, as employer (sole proprietor) contributes max amount to SEP in 2008 (25% of comp). Is this permissible?
Appleby Posted March 14, 2009 Posted March 14, 2009 Yes...as long as both companies are not related or affiliated...and it would be 20% of modified net profit Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
K2retire Posted March 14, 2009 Posted March 14, 2009 Slight variation -- company begins the year with a SAR-SEP left over from years ago. Mid year they switch to a 401(k) plan. Does the 402(g) limit cross plan types? What other sorts of limits do they need to be watching for?
Jim Chad Posted March 14, 2009 Posted March 14, 2009 The 402(g) limit is a per person per calendar year limit and yes, it does include SEP and 401(k)...... one $15,500 limit per person for 2008.
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