SEP-IRA - How much Income is needed to max out?(Posted by ynlvr on 12/27/12 at 9:43 pm)
I am looking for a quick opinion from tax savvy MT posters before conferring with my CPA.
So, if I have a small business (S Corp) and I pay myself and spouse as the only employees of the business, how much income do I need to pay us each to max out on the $50,000 (2012) SEP-IRA plan? Is it simply $200,000 each? Or do I need to include the $50,000 SEP-IRA payment in my gross income? The language is a little squirrely for my taste as is all things IRS. Any competent help on this subject is appreciated.