SEP-IRA contribution deadline

[Gretel]

Investment Advisor suggested for S-Corp. (3-15. filing deadine) to set up SEP-IRA for 2010. Tax return has been filed last month. Although contribution deadline includes extensions I assume a tax return cannot be amended after the original deadline to fund SEP-IRA, correct?

[ChEAr$]

Investment Advisor suggested for S-Corp. (3-15. filing deadine) to set up SEP-IRA for 2010. Tax return has been filed last month. Although contribution deadline includes extensions I assume a tax return cannot be amended after the original deadline to fund SEP-IRA, correct?

You're right.

Just yesterday client called with same question. Upshot is that he will mail me his data as usual, I will rough out the return with the max 49,000$ on it, but file an extension and tell him what to send in 4/18.
Final return wont' be filed until October of course.

[Gretel]

Thanks, Harlan. Another question (probably a stupid one but I need some assurance): It does not matter if the income of the corporation becomes negative, does it?

[ChEAr$]

Thanks, Harlan. Another question (probably a stupid one but I need some assurance): It does not matter if the income of the corporation becomes negative, does it?

Nope. Based on salary, a percentage as specified in the plan.

However... be sure the plan is established BY the corporation.