Are Simplified Employee Pensions tax deductible ?
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Employee Pension you can contribute and deduct more than is allowed under the
IRA rules. Contributions are based on a written allocation formula.
Contributions cannot be discriminatory in favor of the owner(s) or
management and must be made for employees.
For 2009, if you are
self-employed, tax deductible contributions to your personal
Simplified Employee Pension may not exceed 25% of your net earnings, or $49,000. Net earnings are reduced by your self employment tax deduction.
The deadline for establishing and contributing to an
Simplified Employee Pension is the due
date or your tax return, including extensions. |
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Related tax
information about Simplified Employee Pensions |
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IRAs
Roth IRAs
SIMPLE IRAs
Keogh Plans
Are IRA rollovers
taxable on my tax return?
Adjustments to Income |
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IRS publications about
Simplified Employee Pensions:
For additional information, refer to Tax Topic
451, IRAs, or IRS Publication
590, Individual Retirement Arrangements (IRAs). For
further
education information refer to IRS Publication
970, Tax Benefits for Higher Education;
IRS Publication 508, Educational
Expenses; IRS Publication 1577,
Applying for Educational Financial Aid; and IRS Publication 520, Scholarships
and Fellowships. Also see IRS Publication
17, Your Federal Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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