- quote -

I agree, but these contributions and would not show up on
the employEE's W-2 for a 5305-SEP. The FICA deductions would
obviously be assessed on the salary that the employEE uses
to fund the IRA, but those amounts would be unknown to the
employER and would not be assessed separately from FICA on
any other salary paid.

- quote -

Same here, but for a slightly different set of
circumstances.

--
Vic Roberts
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Victor Roberts wrote:
- quote -

You are indeed correct in that employER contributions are
not subject to FICA. However employEE contributions,
whether they be to the IRA for which the SEP is established,
or other "regular" retirement plans, FICA does apply to the
contributions.

However, one with control (like me and you) should
determine the better route to take. IN my case for example,
25% of my salary is lower than the 4500$ I qualify to
contribute to a regular IRA, so th'ats my route this
particular year.

ChEAr$,
Harlan Lunsford, EA n LA

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Victor Roberts <xxx[at]lighting-research.com> wrote:
- quote -

Sorry - I should have typed "The 560 for the year ..." not
"the 590 ..."

--
Vic Roberts
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kamlet[at]panix.com (Arthur Kamlet) wrote:
- quote -

I'm certainly not a tax professional, but my one-employee
company has established a SEP (a 5305-SEP, not a 5305A-SEP)
for its one employee - me. According to page 6 of
Publication 560 (2004) SEP contributions are not included on
the employee's W-2 form. The 590 for the year I established
the SEP plan has the same statement. Therefore, it is and
has been my understanding that no FICA tax is withheld from
SEP contributions.

--
Vic Roberts
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<jackie_o01[at]yahoo.com> wrote:

- quote -

When you earned the money, the amounts contributed to the
plan was included as part of Soc Sec/Medicare wages on Boxes
3 and 5 of your W-2 form. And when distributed to you from
the Plan, they are not subject to Soc Sc/Medicare.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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- quote -

Generally not -- the FICA taxes are paid before the money
goes into the plans. Only income tax is deferred. The same
holds true for nonqualified (deferred compensation) plans.

Steve

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Are qualified retirement plans, in particular, the SEP-IRA,
SIMPLE-IRA, or SIMPLE 401(k) subject to FICA? Thanks.

Jackie

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