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New Member
posted May 31, 2019 5:52:49 PM

Do the IRA-SEP contributions for husband and wife have to be equal amounts

Self-employed husband and wife running our business together with no employees. We have only had an IRA-SEP in my name and my wife wants to have her own IRA-SEP. We have been splitting our Schedule Cs so we both vest in Social Security. She will open an IRA-SEP for 2016 in her name and I'm wondering if the contributions to her account have to be equal to mine or if they can  be different amounts.

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6 Replies
Level 9
May 31, 2019 5:52:51 PM

They can be different amounts, as long as neither is more than the amount allowed - essentially 18.6% of net Schedule C profit from self-employment (assuming less then $53,000).  If the Schedule C's are identical, the maximum each of you can contribute is the same, but you don't have to contribute the same amount.

Alumni
May 31, 2019 5:52:52 PM

Sounds like they are filing a single Sch C with both names on it.

Level 15
May 31, 2019 5:52:53 PM

"We have been splitting our Schedule Cs so we both vest in Social Security."

Level 15
May 31, 2019 5:52:55 PM

See OP's prior posts. Not clear if they have an LLC, or if they live in a Commuity Property State.

Level 15
May 31, 2019 5:52:56 PM

I don't think so.  He said splitting sch C so they both get SS credit.  Which would be from separate schedule Cs

Alumni
May 31, 2019 5:53:00 PM

Oh, ok.  I interpreted it as "sharing" a Sch C so they both get SS credit.  But it does say "splitting" so I guess that would mean 2 separate Sch C's.