Hello, Any input on the following will be greatly appreciated!
I have a client who established a SEP-IRA back in 2005. He made contributions every year for three years in a row. No contributions have been made since 2007.
Facts are:
1. He owns a C-Corp and he is the only employee.
2. He receives a W-2 from the C-corp
3. Past contributions were from checks issued by the company (C-Corp)
4. The contributions were reported by the C-corp as deductible by the company, but the IRA custodian reported the 05, 06 & 07 contributions under his social (again, he is the sole owner of the C-Corp and no other employees).
5. As of now, all 5498’s that go out at the end of the year are reported under his social, and not the C-Corp tax id.
6. He received a W-2 and paid taxes before Dec 31 2013. Has not filed his 2013 return yet and has an extension. He wants to make a 2013 contribution.

Questions:
1. Are there any issues here to be concerned about the way the deductions were taken?
2. Can he make a contribution directly, under his name without going through the C-Corp? My understanding is that the employer needs to make the contribution but since he is the sole owner of the C-corp, does that changes things?

Thanks so much!!