December 12, 2008
How do you make an Sep Ira Conribution?
There are rules that have to be followed in order to set up a Sep Ira Conribution. The company has to fill out a formal written agreement in order to provide benefits to their employees. This agreement has to be completed and signed by the due date of their tax return and this includes any extensions that there may be as well. If this is not done, then there are no benefits that can be contributed for that tax year. There are several different types of agreements that can be created but the easiest one to use is the IRS-model Form 5305-SEP because you just have to fill in the boxes.