Sep Ira

[S T]

S Corp on accrual basis. Going to open SEP IRA for 2006 (calendar year). If funded by 12/31/06 would take deduction on 2006 tax return.

When to deduct on tax return if not funded until April, 2007 for 2006?

Sandy

[Unregistered]

2006

Must be funded by due date of return. Don't know if that includes extensions or not.

JoshInNC

[jimmcg]

Believe it does include extensions for SEP-IRA.

[Y2KEA]

Since they are accrual basis, Debit pension exp & CR pesion payable if not funded by year end.

[Unregistered]

If cash

basis they get the deduction also.

[S T]

So

Thanks for the replies.

So if my interpretation is correct, t/p would report the SEP IRA contribution on 2006 return whether or not the funding was completed by 12/31/06 or 3/15/07 and even possibly further extensions. (1120S form)

Sandy

[Y2KEA]

The 30 rule for depositing contributions into the employees account probably comes into play here.

[Bees Knees]

The 30 rule for depositing contributions into the employees account probably comes into play here.

The 30 day rule only applies to elective deferrals. SEP IRAs do not have an elective deferral option (other than the old SARSEP).

Due date for making contributions for calendar year 2006 for an S corporation is September 15, 2007, assuming the taxpayer files for an extension. (see TTB, page 13-5)