SEP IRA?

[Guest sugar daddy]

hi,

a one employee S-Corp is wanting to put $30K in a SEP.

1) Can an S-Corp have a SEP

and

2) Does the contribution reduce FICA taxes the participant has to pay?

[Belgarath]

1. Yes.

2. No.

[Calavera]

1. For 30K contribution in a SEP, W2 wages should be at least 120K and business should not sponsor a defined benefit plan.