Another Onery client/broker

[Lion EA]

Anyone have a link to a readable IRS Pub, Notice, something readable, that says the SEP contribution deadline for a SE person is extended if the Sch C/1040 was extended?

Have a long-time client talking to a new employee at his long-time brokerage telling him that it's too late for a 2020 contribution. He makes monthly contributions but maxes out his SEP every year after we complete his returns. We wasted all today talking to her.

[Lee B]

PUB 560 page 6

"Deadline for setting up a SEP. You can set up a SEP for any year as late as the due date (including extensions) of your income tax return for that year."

[Lion EA]

Perfect. I thought I skimmed that, but not thoroughly enough. Thanx!

Oh, wait a minute. He set up his SEP years ago, so "set up" is not the issue.

What's the deadline for contributing to his already-existing SEP? Broker claims 15 April/17 May. I'm saying 15 October, but can't find anything that says contributions can be made through 15 October for extended returns.

 

[Margaret CPA in OH]

My Quickfinder handbook says that the date to establish plan and make contributions is the return due date, including extensions, for the year the plan is to be effective.  I read that as making contributions even after the plan is established is good to the extended due date.  Scroll down on this link https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-seps#contributions to   When must I deposit....  it says including extensions.

[Lion EA]

Thank you, everyone. Love argumentative broker assistants in October!

[Lee B]

Ah, an assistant. A brokerage should this clearly referenced. Ask the assistant for a copy of the brokerage guidelines.

Although I remember an Investment Advisor for my bank who had never heard of a QCD.