Sep

[zeros]

Have client coming in that has a SEP. New client. Do you need to be self employed to have a SEP? Where is the "Plan Contribution Rate" obtained?

[Matt Sova]

Sep

You have to have SE Income to have a SEP. Unless this client owns a corp then the corp could have a SEP and contribute based on his and other employee wages.

He could work for a company that has a SEP but he cannot put money into it.

[zeros]

"Plan Contribution Rate"

Where does this rate come from?

[dsi]

Review tab 13 of TTB. You'll find your answers within.

[JG EA]

A point about TTB's %'s. It makes it sound like you start from 20% if SE and 25% if for a corp, etc. In reality you start from 25% and it shakes out to 20%. I got mixed up on this and put the 20% figure into my software and it took it down lower.

[kamckinley]

Have client coming in that has a SEP. New client. Do you need to be self employed to have a SEP? Where is the "Plan Contribution Rate" obtained?

You can work for an employer who has a SEP setup for his/her employees, so no you don't have to be self employed to have a SEP.

I believe the plan contribution rate is from the plan documents, back when the plan was originally setup.

[Bees Knees]

I believe the plan contribution rate is from the plan documents, back when the plan was originally setup.

The plan contribution rate can change from year to year. The original documents are irrelevant. SEPs are like IRAs. You put whatever you want in from year to year, up to the max limits, as long as all employees receive the same %.