Archive for January, 2010
Sep Ira Percentage
January 7th, 2010
Question: If I want a SEP IRA for two owners of an scorp do I need to match the same percent for two eligible employees?
Two owners SCorp and two elighible employees for an scorp. Is there a min Contribution for the employees or does the percentage need to be the same for all employees under this plan for 2007?
Answer: You MUST contribute the same percentage for ALL employees. Otherwise, you’d have a plan that discriminated in favor of the owners, which is illegal.
If you have a SIMPLE (which is too late to start for 2006, but in time for 2007), you can have it set up as an employee Contribution program with a company match between 1 and 2% per year (depending on certain conditions). Max contributions to a SIMPLE are about $10,500.
–A Damn Fine Tax Advisor
We are no longer persons of interest
Posted in 
Tags: 