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ceebee11
Returning Member

Opening SEP-IRA as a Single Member LLC

Just a few questions about opening a SEP-IRA as a single member LLC

 

1) Do I open it in my LLC name or my own name?

 

2) Do I use my EIN or my SSN?

 

3) Which compensation category do i choose?

   w-2 wages (note, I do not receive a w-2 as my LLC is pass-through)

   Sect 3401(a) wages

   415 Safe-Harbor compensation

 

Thanks for your help.

4 Replies
MinhT1
Expert Alumni

Opening SEP-IRA as a Single Member LLC

1. You should open it in your personal name.

 

2. Use your SSN

 

3. Please read this IRS document for more information.

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ceebee11
Returning Member

Opening SEP-IRA as a Single Member LLC

Thanks for the response!

 

From the link you provided I'm still unsure of which category I fall into as all of my income goes on Schedule-C and I do not receive any W-2 forms.

MinhT1
Expert Alumni

Opening SEP-IRA as a Single Member LLC

For a self-employed individual, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to $57,000 (for 2020; $56,000 for 2019). You can calculate your plan contributions using the tables and worksheets in Pub. 560.

 

Your income is your net earnings from self-employment as shown on Schedule C.

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ceebee11
Returning Member

Opening SEP-IRA as a Single Member LLC

Thank you very much for your help.

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