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Questions & Answers

  • I am a sole proprietor. My small business has never had a retirement plan, but I just established a SEP on 3/3/11 and I am going to make a SEP contribution IN 2011 FOR 2010 tax year. My MAGI will be approx. $180K and I’d also like to make a deductible traditional IRA contribution. 

    I saw a post on a bulletin board that suggested I could do this because active participant status for SEP plans is based on the timing of the SEP contribution not the tax year it is for. I just wanted to verify that I am understanding this correctly ... on your website you refer to "active participant in a retirement plan" but the term used in the IRS instructions is "covered by a retirement plan" and I am wondering if those two phrases are synonymous or perhaps cover different situations. Thanks!

     

  • Can an IRA contribution be made now (for last year) on behalf of (for) , an individual who died in December of last year? 

    Answer  provided by Appleby Retirement Consulting Inc. Appleby Retirement Consulting Inc provides Consulting, Coaching and Content on IRAs and other retirement plans to Financial, Tax and Legal professionals.