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07 Sep Ira Contribution

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    07 Sep Ira Contribution

    The 07 SEP IRA contribution is
    Generally a SEP must be established and funded by your tax filing deadline. Generally, filing extensions extends the period for establishing and funding the SEP plan. For a sole proprietor April 15th would be the deadline to establish and fund a SEP for the prior tax year. If an extension was filed a sole proprietor can establish and fund a SEP IRA by October 15th.
    Question is:

    the SEP IRA funds are in transit, however, not posted to the accoount or confirmation received as of 10/09/08. Still 6 days to go!

    Is it adviseable not to electronic file the t/p return until confirmation is received on the SEP IRA funds for 2007?

    Or,
    can we electronic file the return and hope that the institution finally gives the t/p confirmation on the receipt of SEP IRA funds timely with the 10/15/08 extension form.

    Concern is: funds posting date after the electronic confirmation date even if it is still within the 10/15/08 deadline. Wouldn't it be prudent to have the fund contribution date just prior or the same date as the electronic submission/confirmation file date?

    Sandy

    #2
    The SEP/IRA must be established and funded by the extended due date of the return, or October 15th. Filing the return a few days before that, and before the SEP contribution is actually made, doesn't accelerate that deadline.

    Having said that, since there are only a few days between now and October 15th, I would wait to file the return until confirmation is received that the SEP contribution has been deposited into the account. And I would advise my client to do everything he can to make sure the financial institution has the funds and processes them promptly.
    Roland Slugg
    "I do what I can."

    Comment


      #3
      Do you suppose

      Seems like this t/p's financial institution lacks timely notices. T/p's have phoned daily and all they receive as a reply is we will fax you when confirmed. That makes me nervous!
      The funds probably arrived on Monday, and no confirmation, today is Thursday!

      So question, if t/p can confirm that their check has been cashed with a date stamp would that constitute delivery to the SEP IRA fund even if t/p has not received confirmation yet from the financial instituion? Or would a receipt on mail delivery to the financial instituion constitute timely posting?

      Sandy

      Comment

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