SEP IRA for employees
What is the max that an employee can add out of their own pocket to a employer sponsored SEP IRA for 2012. (age > 50)
thanks in advance.
What is the max that an employee can add out of their own pocket to a employer sponsored SEP IRA for 2012. (age > 50)
thanks in advance.
Permalink Submitted by mk foss on Wed, 2012-02-08 20:24
Ordinarily the SEP IRA only receives employer contributions. An employee can contribute the traditional IRA deduction to the IRA account that’s part of the SEP plan. The usual limitations apply with a $5,000 maximum if that’s less than earned income. Whether the contribution is deductible or not depends on the adjusted gross income limitation rules.
If there is just one owner-employee, the contribution is an employer contribution, not an employee contribution.