Multiple SEP IRA or just 1
We have a physician client who on their tax return has a SCH C and also has a Corporation that is treated as an S for tax purposes. He has had a SEP in place for the Sch C income for many years but his income has moved to mostly the C Corp.
I know he could have multiple SEP IRAs, the question is this, can he use the same SEP IRA account and fund it partially with the SCH C & S Corp? Is it required he have two SEP IRA accounts and fund them each partially up to the max?
Permalink Submitted by Alan - IRA critic on Wed, 2015-04-15 04:02
One SEP account should be OK, but if a 5305 SEP both of the entities must qualify to use a 5305. Of course, complete records must be kept with respect to the contributions made for each entity to the IRA, and contribution limits are not affected based on the number of SEP accounts maintained. Sounds like one employer with respect to the 53k total contribution limit.