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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10142
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a cash basis schedule C business. I want to make a

Customer Question

I have a cash basis schedule C business.
I want to make a SEP IRA contribution for 2015.
Although the contribution is allowed, which year do I apply it to, I wrote the check this year (2016) for last years contribution
Submitted: 8 months ago.
Category: Tax
Expert:  Lane replied 8 months ago.

Hi,

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Generally a SEP must be established and funded by your tax filing deadline. Generally, filing extensions extends the period for establishing and funding the SEP plan.

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During the time between the first of the year and your entitiy's deadline (with extensions) you have the choice of applying it to either

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Expert:  Lane replied 8 months ago.

The custodian's form, web portal, etc will likely have a check-box for choosing the year.

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So if your intent is to contribute for 2015 you would check tax year 2015 box.

Expert:  Lane replied 8 months ago.

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I hope this has helped.

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Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

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That's the only way I'll be credited for the work here.

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Thank you!

Lane

Expert:  Lane replied 8 months ago.

Lawrence, Did you see my answer?

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The 15th day of the third month after your year end is the dur date for th SEP contribution for that previous calendar year

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SO, between the end of the C-Corp's year and that date you can make the contribution for EITHER year.

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Please let me know if you have more

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If this HAS helped, and you DON’T have other questions … I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

...

That's the only way I'll be credited for the work here.

...

Thank you!

Lane

Expert:  Lane replied 8 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane