Can an S Corp officer with wages contribute to a SEP IRA

[Karl · Accepted solution]

Yes, based on wages, not SCorp profits.  The "1 = max" calculations and irs.gov will help you get the right amounts.  Remember that if you make employer contributions for the owner, you have to make pro-rate contributions for any other eligible employees, if any.

[TaxGuyBill]

Actually, it is the other way around.  The corporation with an employee/officer can contribute to the employee's SEP.  So it is the corporation that is doing the contribution, not the employee/officer.

[Karl]

Agreed.  Sorry, I rushed my prior comment.  Employer contributions would go on 1120-S, any employee-level/side contributions are essentially a traditional IRA contribution and would go on the S-Corp owner's 1040.

[sjrcpa]

There's no employee contribution to a SEP.

(I'm assuming this is not a pre1986 SARSEP.)

[Karl]

Agreed. I was referring to the setup in custodian accounts. Back when I had a SEP IRA, using Vanguard, their interface showed the ability to make "EE SEP contributions." If I put any in, it used up my annual tIRA allotment.