Bonus in form of IRA contribution
Can the owner of a corporation pay a bonus to employees in the form of an IRA contribution without withholding taxes and take a deduction?
Can the owner of a corporation pay a bonus to employees in the form of an IRA contribution without withholding taxes and take a deduction?
Permalink Submitted by Alan - IRA critic on Thu, 2014-01-30 16:32
A properly adopted SEP IRA would be the only way of doing this.
Permalink Submitted by mk foss on Sun, 2014-02-02 00:05
I agree with Alan. The SEP can be set up before the due date and deducted on the 2013 business return but the owner and employees each have to receive the same percentage of earnings which is not the usual case for a bonus.