I am not very knowledgeable about the retirement tax rules. I hope the experts here can help me with these few questions.
(1) I hear the deadline of making contribution to a SEP IRA is the deadline of the employer's tax return plus extension. So if the employer is on a fiscal year from 10/1/2007 to 9/30/2008, their 2007 tax return won't be due until 12/15/2008. And then if they file an extension, the deadline will be extended to 6/15/2009. So does it mean the employer can still make 2007 SEP IRA contribution for it's employees on 6/15/2009?
(2) The SEP IRA contribution is base on the salary of the employee in a particular tax year. So if a company is on a 10/1/2007 to 9/30/2008 fiscal year, is the contribution that it can make for an employee also based on the salary of the employee in the same period?
(3) An employee has already had a IRA that he set up for himself years ago. Can the company make SEP IRA contribution to the same IRA account of the employee or do they have to set up a new SEP IRA account for him?
(4) The employer's contribution rate for the employee is 15%. If the employee has already made a 2007 contribution of $4,000 for himself, does it mean the employer can only make a contribution of (15% of his salary - $4,000) for that employee for year 2007?
Thank you very much for your help in advance.
(1) I hear the deadline of making contribution to a SEP IRA is the deadline of the employer's tax return plus extension. So if the employer is on a fiscal year from 10/1/2007 to 9/30/2008, their 2007 tax return won't be due until 12/15/2008. And then if they file an extension, the deadline will be extended to 6/15/2009. So does it mean the employer can still make 2007 SEP IRA contribution for it's employees on 6/15/2009?
(2) The SEP IRA contribution is base on the salary of the employee in a particular tax year. So if a company is on a 10/1/2007 to 9/30/2008 fiscal year, is the contribution that it can make for an employee also based on the salary of the employee in the same period?
(3) An employee has already had a IRA that he set up for himself years ago. Can the company make SEP IRA contribution to the same IRA account of the employee or do they have to set up a new SEP IRA account for him?
(4) The employer's contribution rate for the employee is 15%. If the employee has already made a 2007 contribution of $4,000 for himself, does it mean the employer can only make a contribution of (15% of his salary - $4,000) for that employee for year 2007?
Thank you very much for your help in advance.