jobalian[at]gmail.com wrote:
- quote -

So am I!

SEPs are set up at the company level. When you were self employed you
had your own company and were able to contribute to a SEP. For your
partner that set up a PA, she likely contributed her "partnership
interest" to her PA, thereby essentially creating her own business
again, which allowed her to set up her own SEP. For the other partner,
I don't see how he is doing it.

I also don't quite understand what you mean by being at the 75%
partnership level. If you could explain this I would be most
appreciative.

You should check with your group's accountant to see if the group has a
sponsored plan. My first recommendation to you would be to set up a
group plan and fund it directly from the group.

The form of your business could also impact what you can do. The rules
are different for partnerships and LLCs than it is for S Corporations.

Good luck,
Gene E. Utterback, EA, RFC

I have a question regarding eligibility for contributing to a SEP IRA.
I am a physician and am currently at 75% partnership level in a private
practice group (LC).
During 2004; I was a contractor for the first half of the year and then
a partner (50% level) for the rest of the year. So, in terms of tax
documents, I received a 1099 as well as a K-1. And I contributed
towards my SEP IRA (I think I made the maximum allowable contribution).
Now for 2005, I was a partner during the whole year (50% level for the
first half and 75% level for the second half). So, I only received a
K-1
Now my CPA tells me that I am NOT qualified to make a contribution to
the SEP IRA (because I am no longer "self employed") and therefore
cannot use the maximum allowable limit of $44,000 a year.
One of my partners agrees with that (she is part time; at 50% level)
and tells me that she had to set up a P.A. (professional association)
for herself - basically incorporate herself so as to be able to make
the maximum contribution towards her SEP IRA every year.
However, my senior partner (who has been at 100% partnership level for
the last many years) tells me that he has been contributing towards his
SEP every year - without having to set up any kind of a P.A or anyhting
else like that.

I am very confused and am not sure whom to believe. Please advise.
Thanks