I own multiple LLCs and I am the owner and only employee. I would like to set up a SEP IRA for myself this year. I understand the total allowed is 25% or $49,000 and that is the max per person. However, let’s say Company A made $170,000 in profits. I can put in a maximum of $42,500 in the SEP IRA from that company.

Now, what do I need to do to put in another SEP IRA from another company to make up the $6,500 ? Example, my Company B made $150,000, putting in 25% from it would put me over the $49,000 limit per person. Do I just fill out another SEP IRA form and put down $6,500 from Company B?

That way Company A’s contibution is $42,500 and Company B’s contribution is $6,500 – making the total $49,000 for me. The max allowed per year.

I hope that makes sense. Since one company did not make over $200,000, I need to use multiple companies that I own to make sure I claim the full $49,000.

Thanks!
JWP

Client opens a SEP IRA (S Corp – 2 owner operators) in 2010 – Original document indicates 1 year for employee eligibility.

Client hires another employee in 2010 – and is now not so happy with their current SEP Provider.

Client wants to open another SEP in 2011 with another Provider and Have a 3 year Eligibility requirement so that the owners can fund in 2011 (as they have been employed the 3 years necessary 2009, 2010 and 2011) and not have to fund for new employee in 2011 – They understand they will have to in 2012.

Question – Can this be done?

I have done some research and I am not clear on this – Any ideas? I appreciate your help.

Thanks.

Thanks for the help.

I am currently in my early 30′s and don’t have much tax shelter. I wanted to contribute to an IRA so that i could lower my tax bracket.

AND if you make too much isn’t it just better to put the month into a investor acccount and buy lets say Mutual Funds.

I apologize in advance, i am pretty new to investing only been doing it for about 3 years. THANK YOU for the help in advance.