Sep Ira catch up provision
I have a client that is over age 50 and his CPA has told him he can contribute $54,000 to his sep ($49,000 regular plus $5,500 catch-up) I can’t find were a catch up provision is allowed for a SEP.
I have a client that is over age 50 and his CPA has told him he can contribute $54,000 to his sep ($49,000 regular plus $5,500 catch-up) I can’t find were a catch up provision is allowed for a SEP.
Permalink Submitted by Alan Spross on Mon, 2010-04-26 20:36
There is no catch up contribution to a SEP IRA, unless the owner opts to make a regular TIRA contribution to the SEP IRA. In that case the catchup is limited to the $1,000 traditional IRA contribution limit.
Permalink Submitted by mk foss on Mon, 2010-04-26 21:23
If the SEP was actually a SARSEP, a catch up contribution is allowed but there are very few SARSEPs still around. The SARSEP amount is $5,500 – but I think Alan is correct and it is truly a SEP.