"JMc" <jmmc76[at]NOSPAM.gamebox.net> wrote:

- quote -

Go to IRS web site and review Publication 560.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

When must a self employed individual make their elective
deferral and catch-up contribution to their SARSEP?

A coworker told me that the deferrals can be made by the tax
return due date (including extensions). However, the
catch-up must be made by Jan 15th. When I asked what her
authoritative literature was, she replied that a plan
administrator told her.

It doesn't seem right, but it does, in a way, seem right.
I've had a horrible time researching this, so I thought I'd
give it to you all.

Other info just in case:

SARSEP is top heavy and 3% of eligible employee wages must
be contributed to employees' accounts.

Self-employed individual made payments to his SARSEP
throughout 2005 totaling about $6k.

More than 50% of eligible employees contribute, and highly
compensated self employed individual's deferral % does not
exceed 125% of the average non highly compensated
individuals deferral %

Self-employed individual old enough to make catch-up
contribution.

Thanks in advance for the help.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >