Tax accountant

[Consultant]

Husband & Wife formed Partnership. 1065 No employees. First year profit could reach
$60,000.00. Can they set up a SEP for each? 50/50 split. If so, can they then set up IRA's? I think
the SEP would be considered a plan at work and they are still under IRA thresholds?

[TAXNJ]

See TTB 28-3 Pension Plan Characteristics - gives a great comparison (and advantages/disadvantages) of various plans

[Rapid Robert]

Can they set up a SEP for each? 50/50 split. If so, can they then set up IRA's? I think
the SEP would be considered a plan at work and they are still under IRA thresholds?

The partnership (not the partners) can set up a SEP-IRA for the partners. Yes, it would appear they would still be able to deduct regular IRA contributions. I suspect however that if the partnership sets up a "solo" 401k plan for the partners, the allowable contribution including elective deferrals could be much higher than with a SEP IRA, if their goal is to contribute as much as possible.

Also, it would be helpful to use a title for your post that actually relates to the content.