sjrcpa
Level 15
04-14-2020
08:04 PM
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Sounds like you found a reference to a SARSEP (Salary Reduction SEP). You haven't been able to set one of those up since TRA 86 and I don't if any one still has them.
Or the SEP has an employer contribution part plus an employee IRA part (I've never seen this.
So, for a SEP there is no over 50 catch up. The max is 25% of net self employment income.
Now SIMPLE and 401(k) do have over 50 catch up provisions.
Have your client contribute $6,000 to an IRA if that's the issue.
The more I know the more I don’t know.