SEP deduction

Client is 70 years old in November 2014. Can he take a SEP deduction for the year 2014? How about in the year 2015?



There is no age limit for SEP contributions. Client can therefore be making contributions in the same years that he must take RMDs. The contribution amount has no affect on the RMD amounts and vice versa other than new contributions will increase the balance the RMD is based on. Client can aggregate the RMD between any SEP, SIMPLE, or traditional IRAs he owns.



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