SEP – Covered by Retirement Plan?

Hello-

Single member LLC that files on Schedule C. If they set up a new SEP now and contribute for 2023, are they considered covered by a retirement plan in 2023?

Trying to determine if they can also make a deductible Traditional IRA contribution. Income is over the limit if covered by a plan but not if not covered (spouse is covered).

Thank you!



IRA owner is covered only for years IN WHICH SEP contributions are made. Since no SEP contribution was made in 2023, the owner is not treated as covered by this plan for 2023.

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