Can an employer exclude his own contribution but still contribute to employees

Submitted by Diane DeOliveira on Mon, 2020-02-17 15:03

I have a client who didn’t have a very good year in 2019. He does not want to make a contribution for himself into the SEP IRA but would still like to contribute a certain % for his employees. Is this allowed?



Submitted by Alan - IRA critic on Mon, 2020-02-17 16:06

No, client is treated as one of the employees, therefore must contribute equally for himself and employees.

Submitted by David Mertz on Mon, 2020-02-17 16:40

Of course the SEP contribution for himself will still be based on his net earnings, so if he has no net profit, his calculated SEP contribution will be zero.

Add new comment

Log in or register to post comments