Guest C.R. Gravitt Posted March 28, 2001 Posted March 28, 2001 Can an employee/shareholder (don't know percentage) of a C-corp contribute to a 401(k) plan and make a SEP contribution based on Schedule C income from a side business? If it makes a difference, the employee did not max out their deferral to the 401(k). What would you use as the limit - would you have to net out the 401(k) deferral from the total amount eligible for the SEP? Any help is appreciated!
Guest TracyAndrews Posted March 28, 2001 Posted March 28, 2001 I have the same, or at least similar, question posted under the SEP Section, I'm getting a lot of pressure before 4/15 deadline whether an employer can make a contribution to his existing SEP Plan, although he has adopted a new 401(k)Plan. He does not have to cover his new employees under the SEP (3 out of 5 year rule) even though they participate in the 401(k). Is this right???
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