NASSAUSUFFOLK

 View Only

  • 1.  SEP CONTRIB LIMITS

    Posted 01-04-2022 12:32 PM
    HUSBAND AND WIFE ARE EQUAL EQUITY MEMBERS IN A LLC THAT WILL GENERATE NET INCOME IN EXCESS OF 500K
    IS THEIR COMBINED SEP CONTRIB IN TOTAL LIMITED TO 58,000?

    WOULD APPRECIATE A RESPONSE

    JERRY ROSENBERG

    ------------------------------
    Jerome Rosenberg
    JEROME ROSENBERG, CPA PC
    Melville NY
    ------------------------------


  • 2.  RE: SEP CONTRIB LIMITS

    Platinum Most Valuable Member
    Posted 01-05-2022 08:13 AM
    my understanding is that the SEP contribution is per person based upon with respective income.  I'm figuring that this entity is a MMLLC and taxes as a partnership.  Therefore, the SEP contribution would be limited to 20% of the net income or $50K ($500K / 2 = $250K *.2) for each member for a total of $100K.

    In the event that they are taxed as an S Corp, it would be 25% of their "compensation", which includes W-2 wages along with company paid benefits, etc.

    Hope this helps.

    Steve

    ------------------------------
    Stephen MankowskiCPA
    MANKOWSKI ASSOCIATES, CPA, LLC
    smankowski@mankowskicpa.com
    215-682-7366
    ------------------------------

    Original Message


Discussion Disclaimer

The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.