In this video, I show you how a SEP IRA works. I make it easy to understand the plan’s benefits, limitations, rules and obligations if you have employees. I also show you how to calculate SEP IRA contributions and very importantly, how to fill out IRS Form 5305-SEP – the single form needed for the Internal Revenue Service to set up a SEP IRA….(read more)
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This is such a helpful clarification in my CFP studies. Thanks.
good timing to come to your channel. I am plan to open Sep IRA account this week. Thanks for the info, explaining very clear. Also subscripted your channel.
how would you fill out 5305-form for someone who works for gig apps like Doordash/Uber/Instacart etc.. ??
My phone and my car at full max volume and I barely hear you .. speak up dude
Totally confused on the limits and the formulas you used.
What about contractors aka 1099?
Great video! I am an employee of an S Corp. If my employer makes the contributions, can I (the employee) still get a deduction because it is tax deferred?
Thank you for the information! I subscribed! 2020 was a bad year and by calculation I could only contribute about $1500. I already filed my tax in Feb and got refunds. Is it worth filing an amendment to include my $1500 contribution to SEP IRA? Thank you.
Thanks for this video. I have a SEP IRA (and am self-employed, no employees). When making my contribution for tax year 2019 before the filing deadline (in July 2020), I miscalculated my maximum contribution and transferred almost $200 more than the maximum amount into my SEP IRA account. I caught the error and submitted my 2019 tax return with the correct maximum contribution amount. Since my brokerage firm does not capture information about the tax year for which the contribution is intended, and the allowable period for making SEP IRA contributions for consecutive tax years overlaps, would I be able to simply reduce funding into my account when I file my 2020 taxes and avoid all the complicated excess/over contribution corrective actions? In other words, if the amount I added to my SEP IRA account during CY 2020 was $25, 200, and my maximum contribution for 2019 and 2020 were $25,000 and $20,000 respectively, could I just fund the account with $19,800 before April 15, 2021? And since I reported $25K on my tax return as my contribution for 2019, should I report a $20K (v $19.8K) SEP IRA contribution on my 2020 taxes?
Thanks for the information. If you make an excess contribution to a SEP IRA is the process similar to Roth IRA for correction? There's plenty of info on correcting an excess contribution for a Roth IRA, but not so much for SEP.