I am 100% self-employed. I have a LLC partnership (50/50 with my mom) that made a fair amount in profits last year. Then I have an LLC on my own to do engineering consulting (s-corp).
We have a SEP-IRA for the partnership and should be able to have the company contribute ~20% of that profit to the SEP for both of us. And then do my personal $5500 IRA contribution.
However, if I do that SEP contribution, my accountant then considers me as "covered by an employer's retirement plan". I believe it is a check box that he checks in his software, which then limits my personal contribution to some number way below $5500.
My argument is that I'm not an employee of my own company, I'm the owner. So I'm not covered by an employer's plan and I should be able to contribute to the SEP IRA and also my personal $5500. Isn't this supposed to be one of the advantages of self-employment?? Am I wrong?
Thanks in advance!
Submitted April 02, 2017 at 11:00AM by mkram9 http://ift.tt/2oq2KLq
