SEP - 01/31 FIscal Year End

[clangeland]

We have a client who maintains a SEP in accordance with his company Fiscal Year End of 01/31. It appears his contribution limit for the 01/31/2013 plan year is the 2013 limit of $51,000, this amount is less than 25% of his compensation. Would he take the deduction for this 2013 contribution on his 2012 (02/01/2012 - 01/31/2013) company tax return?

Thanks,

Chuck

[Flyboyjohn]

Can you post the SEP "plan document" that reflects a fiscal year?

I susoect his SEP is calendar year so he deducts on the company 1/31/2013 tax return the contribution for calendar 2012 ($50,000)

[clangeland]

Flyboyjohn - Your suspicion was correct, the SEP is on a calendar year as it is on IRS Form 5305. Just to confirm, the 25% contribution limit would be based on the compensation from 01/01/2012 - 12/31/2012 and the 25% deduction limit would be based on the compensation from 02/01/2012 - 01/31/2013?

Thanks for the reply,

Chuck