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!



The deadline for establishing a SEP and making contributions is the tax filing due date, plus extensions.



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?



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.



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