SARSEP and Traditional IRA

[Guest gonzalezk]

If my employer offers a SARSEP Plan but I have never signed up for the plan, can I still take the deduction from a Traditional IRA ?

I asked my employer about this and he assures me that I can take the IRA deduction. According to Publication 590, I cannot take the deduction if my employer OFFERS a pension or annuity plan. I don't want to get penalized by the IRS if my boss is incorrect. Is a SARSEP plan considered a pension or annuity ?

[Guest AFRICA6796]

It seems you employer is right.

Check this site

http://www.irs.ustreas.gov/forms_pubs/pubs...bs/p5900108.htm

A SARSEP is NOT a pension or annuity plans

[Guest gonzalezk]

Actually, I found out already but your help is appreciated. I read that publication but it didn't mention anything about SARSEP specifically. But now that you have informed me that it is not a pension or annuity plan, I can definitely take the IRA deduction.

Thanks again.