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Retirement tax questions
Thank you. I review your return and you have a contribution to SEP plan entered (see Koegh, SEP, and SIMPLE Contribution Worksheet line 4) therefore you are considered to be covered and the question won't come up.
According to the IRS:
"You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a:
- Defined contribution plan (profit-sharing, 401(k), stock bonus and money purchase pension plan) and any contributions or forfeitures were allocated to your account for the plan year ending with or within the tax year;
- IRA-based plan (SEP, SARSEP or SIMPLE IRA plan) and you had an amount contributed to your IRA for the plan year that ends with or within the tax year; or
- Defined benefit plan (pension plan that pays a retirement benefit spelled out in the plan) and you are eligible to participate for the plan year ending with or within the tax year."
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April 4, 2022
10:32 AM