SEP/IRA and W-2

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  • Unregistered
    #1

    SEP/IRA and W-2

    owner/employee of s-corp pays himself 30K per yr
    as w-2 wages. this year(2005) opens sep/ira and company
    contributes maximum(25% wages).
    question: how is the w-2 prepared:do the wages stay
    at 30K but boxes 3 & 5 show the additional contribution (7500)
    amounts? or should i increase wages by the contribution also?
    thanks for answers
    Tags: None
    • Matt Sova
      Senior Member
      • Jun 2005
      • 645
      #2
      Sep

      Wages stay at 30k. The SEP is an EMPLOYER contribution retirement account. If it was a SIMPLE plan then you may have other issues.

      Matt
      I would put a favorite quote in here, but it would get me banned from the board.

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        • OldJack
          Banned
          • Dec 2005
          • 1689
          #3
          The wages stay as 30k and the S-corp deducts the SEP-IRA contribution as an expense on page 1, line 17. Nothing regarding the SEP-IRA goes on the W2 (except retirement plan box is checked) or 1040 tax return. The fact that the employee is an employee-owner is not an issue with a SEP-IRA.

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