topic Do the IRA-SEP contributions for husband and wife have to be equal amounts in Retirement tax questions

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

matrophy — Sat, 01 Jun 2019 00:52:49 GMT

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.

They can be different amounts, as long as neither is more...

Zbucklyo — Sat, 01 Jun 2019 00:52:51 GMT

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.

Sounds like they are filing a single Sch C with both name...

Lisa995 — Sat, 01 Jun 2019 00:52:52 GMT

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

"We have been splitting our Schedule Cs so we both vest i...

SweetieJean — Sat, 01 Jun 2019 00:52:53 GMT

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

See OP's prior posts. Not clear if they have an LLC, or i...

SweetieJean — Sat, 01 Jun 2019 00:52:55 GMT

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

I don't think so. He said splitting sch C so they both g...

VolvoGirl — Sat, 01 Jun 2019 00:52:56 GMT

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

Oh, ok. I interpreted it as "sharing" a Sch C so they bo...

Lisa995 — Sat, 01 Jun 2019 00:53:00 GMT

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.