non-deductible SEP IRA contribution

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Subject Author Date non-deductible SEP IRA contribution removeps-groups@yahoo.com 06-12-2009  Re: non-deductible SEP IRA contribution Harlan Lunsford 06-12-2009  Re: non-deductible SEP IRA contribution Benjamin Yazersky CPA 06-14-2009  Re: non-deductible SEP IRA contribution Harlan Lunsford 06-15-2009  Re: non-deductible SEP IRA contribution Brew1 06-12-2009
Posted by removeps-groups@yahoo.com on June 12, 2009, 2:58 pm Please log in for more thread options Is there such a thing as a non-deductible SEP IRA contribution? http://www.irs.gov/instructions/i8606/ch01.html says you can use 8606 only for non-deductible contributions to a traditional IRA. What if you have Schedule C income that qualifies you to put 10k into a SEP IRA, but your itemized deductions are so much that you wipe out your taxable income even without taking the SEP IRA deduction. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Harlan Lunsford on June 12, 2009, 9:15 pm Please log in for more thread options removeps-groups@yahoo.com wrote: > Is there such a thing as a non-deductible SEP IRA contribution? > http://www.irs.gov/instructions/i8606/ch01.html says you can use 8606 > only for non-deductible contributions to a traditional IRA. What if > you have Schedule C income that qualifies you to put 10k into a SEP > IRA, but your itemized deductions are so much that you wipe out your > taxable income even without taking the SEP IRA deduction. > I can't see there could be, since the business make contributions on a non discriminatory basis to IRA's of all qualified employees, including owner in this case. Therefore deductibility for the employee isn't an issue, be he the proprietor or other employee. Good tax planning would delay any contributions until as late as possible in order to assess possible consequences. ChEAr$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Benjamin Yazersky CPA on June 14, 2009, 10:13 pm Please log in for more thread options > removeps-groups@yahoo.com wrote: >> Is there such a thing as a non-deductible SEP IRA contribution? >> http://www.irs.gov/instructions/i8606/ch01.html says you can use 8606 >> only for non-deductible contributions to a traditional IRA. What if >> you have Schedule C income that qualifies you to put 10k into a SEP >> IRA, but your itemized deductions are so much that you wipe out your >> taxable income even without taking the SEP IRA deduction. >> > I can't see there could be, since the business make contributions on a non > discriminatory basis to IRA's of all qualified employees, including owner > in this case. Therefore deductibility for the employee isn't an issue, > be he the proprietor or other employee. > > Good tax planning would delay any contributions until as late as possible > in order to assess possible consequences. > > ChEAr$, > Harlan Lunsford, EA n LA > why would one even want to put $$$ into a non deductible sep-ira? ___________________________________ <<< Benjamin Yazersky, CPA [NJ & NY] >>> -----> real address on hobokeni or hobokenx <----- "This written advice was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer." (The foregoing legend has been affixed pursuant to U.S. Treasury Regulations governing tax practice.) The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Harlan Lunsford on June 15, 2009, 5:35 pm Please log in for more thread options Benjamin Yazersky CPA wrote: >> removeps-groups@yahoo.com wrote: >>> Is there such a thing as a non-deductible SEP IRA contribution? >>> http://www.irs.gov/instructions/i8606/ch01.html says you can use 8606 >>> only for non-deductible contributions to a traditional IRA. What if >>> you have Schedule C income that qualifies you to put 10k into a SEP >>> IRA, but your itemized deductions are so much that you wipe out your >>> taxable income even without taking the SEP IRA deduction. >>> >> I can't see there could be, since the business make contributions on a non >> discriminatory basis to IRA's of all qualified employees, including owner >> in this case. Therefore deductibility for the employee isn't an issue, >> be he the proprietor or other employee. >> >> Good tax planning would delay any contributions until as late as possible >> in order to assess possible consequences. >> >> ChEAr$, >> Harlan Lunsford, EA n LA >> > > > why would one even want to put $$$ into a non deductible sep-ira? Because..... that may be a plan already in place by a proprietor with employees (who must be covered if he is). Otherwise I would say scrap the plan and instead contribute yearly 6000$ max to a Roth IRA; still the best thing since canned dog food. ChEAR$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Brew1 on June 12, 2009, 11:33 pm Please log in for more thread options On Jun 12, 2:58 pm, "removeps-gro...@yahoo.com" <removeps- gro...@yahoo.com> wrote: > Is there such a thing as a non-deductible SEP IRA contribution?http://www.irs.gov/instructions/i8606/ch01.htmlsays you can use 8606 > only for non-deductible contributions to a traditional IRA.  What if > you have Schedule C income that qualifies you to put 10k into a SEP > IRA, but your itemized deductions are so much that you wipe out your > taxable income even without taking the SEP IRA deduction. > Having a SEP IRA doesn't disqualify you from contributing to an IRA, although the max will be $5,000 (+ if you're over 50). You might not qualify for a Roth (depending on your income), but if you have earned income, you can contribute to a traditional IRA. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted can i make roth contribution after i made sep contribution? 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