SEP Contribution Timing

Submitted by Kevin O'Hearn on Mon, 2023-02-13 17:11

Hello,

I have a sole proprietor wants to make a SEP contribution now for 2022, but doesn’t have the cash now to do it. They want to file their taxes now and report the SEP contribution, and then use the refund they receive after filing their taxes to physically make the contribution.

As long as the contribution is made by the business’ tax filing deadline, do you see any issues with the timing of the contribution being after the filing of the tax return?

Thank you.



Submitted by Alan - IRA critic on Mon, 2023-02-13 18:38

Not a problem as long as they make the contribution by 4/18 or file an extension and make the contribution by 10/16.

Submitted by William Tuttle on Mon, 2023-02-13 21:19

Go ahead and file the extension. They can still file before the deadline and have until the extended due date to make the contribution if the refund arrives late.

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