IRS site states you cannot do a $6K catch-up contribution to your SEP if over age 50. Other articles indicate you can do the catch up if your SEP plan permits catch-up contributions through a traditional IRA into your SEP. Can anyone shed some light on this and "if" there is a way to contribute an additional $6K, is it into a SEP directly or somehow through a traditional "AND" how does one enter that in ProSeries. Appreciated and hope all reading this are doing well.
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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.
Thank you and maybe i should have pasted this into my question posting, as it does mention SEP, not SARSEP... If the SEP-IRA permits non-SEP contributions, you can make regular IRA contributions (including IRA catch-up contributions if you are age 50 and older) to your SEP-IRA, up to the maximum annual limit. However, the amount of the regular IRA contribution that you can deduct on your income tax return may be reduced or eliminated due to your participation in the SEP plan.