I contacted the authors regarding this question, but no response to date. Page 13-2 implies no catchup allowed for SEPS, but tax research I have done in RIA indicates otherwise. Can a Schedule C filer, who contributes to a SEP also make a catch up contribution if 50 or over?
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No.
Catch up contributions only apply to elective deferrals, such as elective deferrals to 401(k) plans, SIMPLE plans, and SARSEPS. They also apply to IRAs.
The reference in RIA you found is probably for a SARSEP, not a SEP. Taxpayers are no longer allowed to set up new SARSEPs.Last edited by Brad Imsdahl; 01-13-2007, 09:34 AM. -
SEP confusion
A catch up is not allowed for a sole proprietor with no employees. My guess is, if the employer had employees who were participating in the SEP, they might be eligible for a catch up.Comment
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Brad is correct. No catch-ups for anyone in a "regular" SEP. If the Schedule C taxpayer had employees, the taxpayer would be making the SEP contributions for his/her employees. There would be no catch-ups for anyone.Comment
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