You'll need to sign in or create an account to connect with an expert.
As an employee of the S-Corp, you cannot contribute to your SEP account.
You have to establish a 401(k) plan for the S-Corp and as an employee participant, you can contribute to the 401(k) plan.
A SEP-IRA account belongs to the individual not to the plan. For the S corp to be able to make SEP contributions, the S corp must establish a SEP plan, but the SEP contributions can be deposited into the same SEP-IRA account as was used by the SEP plan of the other entity for its deposits. SEP contributions can only be employer contributions (including the self-employed as their own employer), not employee contributions (except for employee salary deferrals to a SARSEP established before 1997). To be able to make employee elective deferrals, the S corp would have to establish either a SIMPLE plan or a 401(k) plan, not a SEP plan, neither of which is permitted to make deposits to a SEP-IRA account.
See IRS Pub 560: https://www.irs.gov/pub/irs-pdf/p560.pdf
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
berolee
Level 1
erikaeriga
New Member
simplyquigley
New Member
bethfly
New Member
meghanresponds
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.