I have an S Corp. I am the only employee so far, and don't expect to have employees for a couple of years. (As long as my daughter isn't paying for her own security system...)
I just received a divorce settlement and have a question about my SEP IRA.
I would like to be able to offset my income at the end of the year by making a contribution to my SEP plan.
Am I allowed to make deductible contributions using my invested settlement money each year? My goal is to move as much as possible into my retirement, and save tax dollars each year while doing that. I believe I am allowed to do that, but the proforma tax return I created isn't allowing the deduction. I know, I know... I depend too much on the computer!
OR, must I make contributions throughout the year with and the Corporation matches it?
This might be a stupid question, and if it is, don't tell me... just be sweet...
Thanks,
Possi
I just received a divorce settlement and have a question about my SEP IRA.
I would like to be able to offset my income at the end of the year by making a contribution to my SEP plan.
Am I allowed to make deductible contributions using my invested settlement money each year? My goal is to move as much as possible into my retirement, and save tax dollars each year while doing that. I believe I am allowed to do that, but the proforma tax return I created isn't allowing the deduction. I know, I know... I depend too much on the computer!
OR, must I make contributions throughout the year with and the Corporation matches it?
This might be a stupid question, and if it is, don't tell me... just be sweet...
Thanks,
Possi
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