clangeland Posted March 7, 2013 Share Posted March 7, 2013 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 Link to comment Share on other sites More sharing options...
Flyboyjohn Posted March 11, 2013 Share Posted March 11, 2013 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) Link to comment Share on other sites More sharing options...
clangeland Posted March 27, 2013 Author Share Posted March 27, 2013 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 Link to comment Share on other sites More sharing options...
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