Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

If we report Form W-2 and Schedule K-1 income on Form 1040 and SEP contributions will be deductible?

userteam1-us
Level 1
 
Labels (1)
0 Cheers
2 Replies 2
qbteachmt
Level 15

SEP for a Sched C filer is deductible on their 1040. But it seems your client is an Employee, which means the retirement funds as listed on the W2 are already taken pre-tax. You don't get to deduct them, again. It isn't clear what the K-1 is from, specifically, which type of entity. And it also isn't clear if the SEP is from that W2 employment or not. All of this needs to be understood.

I recommend reading up on the retirement options. Start, for instance, with the differences in Accounts, then find out your clients' retirement plans offered by the employer and what they are participating in. There is no one Right answer to such as vague question.

 

Try this:

https://www.investopedia.com/ask/answers/08/roth-traditional-sep.asp

 

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers
George4Tacks
Level 15
What flavor is the K-1? S-Corp, Fiduciary, Partnership, ...

ex-AllStar