Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

If employee salary $70,000 and S corp make SEP contribution…

If employee salary $70,000 and...
If employee salary $70,000 and S corp make SEP contribution $10,000 before S corp tax year end, if SEP account allow other type traditional IRA, how much does employee (age 50+) make non-SEP IRA contribution to SEP account?
Show More
Show Less
Ask Your Own Tax Question
Answered in 18 minutes by:
3/16/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,338
Experience: Taxes, Immigration, Labor Relations
Verified

The employee is allowed traditional or Roth IRA contributions

REGARDLESS of having SEP.

with wages $70,000 - contribution limit is $6,500 if you’re age 50 or older.

HOWEVER

there might be deduction limit on that contribution - because that employee is covered by the retirement plan at work

That limit is based on filing status and on AGI

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,338
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,338
33,338 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am self-employed (sole). I am about to open a new IRA
Hi, I am self-employed (sole). I am about to open a new IRA account (Self Employed IRA), but not sure which one would be optimal for my situation (SEP, Solo 401(k) or SIMPLE IRA). Here is one major va… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I also have question about retirement account such as SEP.
I also have question about retirement account such as SEP. Can S corp make contribution to SEP or pass through individual make SEP contribution on Schedule K-1?… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,338 satisfied customers
I HAVE A S CORP WITH SEP CONTRIBUTIONS FOR ONE EMPLOYEE
I HAVE A S CORP WITH SEP CONTRIBUTIONS FOR ONE EMPLOYEE SHAREHOLDER OF 20 PER CENT WHERE DO I REPORT ON W-2 AND W-3 … read more
TaxWhisperer
TaxWhisperer
Principal
Master's Degree
24 satisfied customers
I have an s-corp, how much can i contribute for tax year
Hi I have an s-corp, how much can i contribute for tax year 2017? Also, i have seceral iras and learned the hard way that a sepIra was bad advice from my accountant! simple IRA or traditional? … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,338 satisfied customers
My husband has a consulting LLC but he has an S corp set up
My husband has a consulting LLC but he has an S corp set up for tax purposes. My question is, since he pays himself a salary from the S Corp is that considered self employment income and I need to fil… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I AM TRYING TO CALCULATE MY CONTRIBUTION LIMIT, I HAVE A S
I AM TRYING TO CALCULATE MY CONTRIBUTION LIMIT, I HAVE A S CORP AND RECIEVED A W2 AS WELL AND I THE ONLY EMPLOYEE AND OWNER AND MY TOTAL INCOME (K1 AND WAGES ) TOTAL 295200 … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,338 satisfied customers
I, as an employer, have been contributing to two employees
I, as an employer, have been contributing to two employees IRA accounts (quarterly) in addition to their salary. I have been reporting their salary through my payroll software and sending them paystub… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I own an S corp with seven employees and want to set up a
I own an S corp with seven employees and want to set up a SEP IRA. It is my understanding from the IRS website that I can't do that since SEPs are only allowed for sole proprietors. Is that right?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I own and am the only employee of an s-corp. Is there a way
I own and am the only employee of an s-corp. Is there a way that would benefit my bot***** *****ne more financially if I set something up through the company or am I ok just doing something tax-free o… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am a S-corp 100% owner. May I set Sep IRA and contribute
I am a S-corp 100% owner. May I set Sep IRA and contribute for myself and at the same time set traditional IRA for myself and my husband? Is the traditional IRA fully deductible if I have SEP IRA? My … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
, Can I set up a SEP plan and contribute 25% of profit
Hi, Can I set up a SEP plan and contribute 25% of profit from Schedule C. (I did not take any salary from the self employment though). I'm making estiomated taxc payments on the assumed profits, but n… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
hello. Im an independent contractor on 1099 since aug 2014. From
hello. Im an independent contractor on 1099 since aug 2014. From January to July 2014 I was under W2 . During January 2014 I had opened a back door IRA (from my personal account converted a traditiona… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
I am in the process of filing my 2012 1120 S corp return (on
I am in the process of filing my 2012 1120 S corp return (on extension). I will have a profit on the S Corp return that will pass to me on Sch K that will cause me a tax liability on my personal 1040.… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
As a self-employed individual who gets paid in 1099s as well
As a self-employed individual who gets paid in 1099s as well as W2s, I'm trying to figure out what retirement plans are best for me when some years I get a lot of 1099 income and some years not much a… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I own a small business where Im the sole employee drawing a
I own a small business where Im the sole employee drawing a salary and filing as an S CORP. What type IRA can I set up through my company to enable me to save money while gaining a deduction off my ne… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I have $70,000 in savings (non-retirement) that I would like
I have $70,000 in savings (non-retirement) that I would like to transfer to a retirement account. I didn't put anything this year into my SEP IRA. I only made $10,000 this year. My wife made about $80… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Tax question I am self employed (DBA) and I need to start
Tax question: I am self employed (DBA) and I need to start planning for my retirement. I have no employees. My insurance agent wants to "sell" me either a Traditional or Roth IRA--I don't think it mak… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,338 satisfied customers
My wife works for a small non-profit. They recently dissolved
My wife works for a small non-profit. They recently dissolved their relationship with the 403(b) provier (Wells Fargo Funds)and are now having employees direct her own retiremnt plan. We exceed the in… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x