SEP contributions
Single member LLC, Wife is the sole owner.
Elected S-Corp at the end of 2019
100% Owned by wife. Husband recently became employee of the s corp.
Wife has a SEP that was established years ago. She wants to make contributions to SEP… does each spouse need to make the same percentage contribution? Does a SEP need be established under the husbands name as well, now that he is an employee?
Permalink Submitted by Alan - IRA critic on Wed, 2020-12-23 22:20
If this is a 5305 SEP, what does that form indicate with respect to new employee eligibility? He may not be eligible this year.
Permalink Submitted by William Tuttle on Thu, 2020-12-24 14:12
The business has the plan with employee eligibility restrictions (if any) with the same contribution rate for all employees. Each employee has their own SEP IRA account to receive employer contributions.