SEP IRA and Ammended Taxe Return
A business owner currently does not have an existing retirement account and wishes to establish a SEP. Can the owner amend his 2008 taxes and establish the SEP retroactively for 2008? Thanks in advance!
A business owner currently does not have an existing retirement account and wishes to establish a SEP. Can the owner amend his 2008 taxes and establish the SEP retroactively for 2008? Thanks in advance!
Permalink Submitted by Jose Morales on Tue, 2009-08-04 15:39
The deadline for establishing a SEP and making contributions is the tax filing due date, plus extensions.
Permalink Submitted by Aaron Zielinski on Wed, 2009-08-05 14:55
Does this mean that the owner could only open and fund the SEP if he hadn’t filed for 2008 yet (+ extensions) or rather still do it while amending his 2008 return since an extension would be good until 15SEP09?
Permalink Submitted by mk foss on Wed, 2009-08-05 16:49
If the owner files for an extension of time, they have until the extended due date to make the contribution. For a corporation the extended due date is September 15. If the return was actually filed after the original due date (March 15) and now, it could be amended and a SEP opened and funded before September 15.
The SEP contribution is limited to 25% of salary or $46,000 (for 2008) whichever is the lower amount.
The limits, due date and contribution base are different for an unincorporated business.