Question

SEP IRA for LLC member with K1 schedule

Forum|Forum|5 years ago
July 4, 2020
1 reply
0 views

Hi everyone,

I am a general member and partner of LLC (200 members), I get K-1 schedule ( box 1, box 4 and box 14 are filled). Am I eligible for SEP IRA based on box 14 earning (SELF employed earning) ? FYI, my LLC does not offer SEP IRA for its members or employees.

some CPA said i can do it and other said I am not ? please advise.

D

dmertz

Employee

SEP contributions are employer contributions, not employee contributions. The SEP plan must be established under the partnership because the base contribution percentage is required to be the same for all members and employees. You are not permitted to contribute to a different SEP plan (such as one in which you are the only participant) based on your net earnings from the partnership.