Harlan Lunsford <lunstax[at]bellsouth.net> wrote:

- quote -

snip

He was already told this on another newsgroup. I think he
is not so much confused as he wants to hear a different
answer. <grin
-HW "Skip" Weldon
Columbia, SC

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ASM wrote:

- quote -

Since you've already filed your 1120S, any income flows
through to your own 1040 via schedule e, page 2, and does
NOT flow to a schedule c. That's for proprietors or single
owners.

So then, no SEPIRA for you this year. Establish one for
this year so that you can pay yourself a regular paycheck
with attendant tax reporting and W2 form at year's end, then
the CORPORATION, and not you, can contribute up to 25% to
the SEP.

Cheer$$$,
Harlan Lunsford, EA n LA

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I have read IRS pubs & NG threads.

I am the sole-owner of an S-corporaton. I am the only
"employee". I have filed my 1120S. I use Schedule C to
determine Net Profit - obviously! I have money in a money
market fund that I want to use to contribute to a SEP-IRA.

I do not file a W-2. Every thread I read seems to indicate
that I have to use W-2 for salary reporting, but I do not
think this is true if I am an S-Corp -use 1120S and all
gross earnings are "pass-thru" to compensation of officers.

1. Can I contribute to a SEP-IRA? If not, why not?

2. If I can, how much can I contribute? What percent do I
take of what figure (Net profit, Adjusted Gross Income,???)

3. Is it too late if I have not yet filed my 1040 for 2003?

Thanks!

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