Tax Law (Questions About Taxes)/contributing to SEP

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Question
Hi there, thanks for taking my question: Is there any way to contribute to SEP for 2013 if I missed the deadline? I'm self-employed, just opened a SEP account before April 15, but when I tried depositing into the account on April 15, I was told I couldn't because it was too late. Is there an way I can still contribute for 2013? Can I do so by filing an amended return?
Thanks again for any advice.

Answer
No, but don't take it too hard, That type of retirement planning provides no net benefit.

All calculations to show a perceived benefit from traditional retirement planning must assume a significantly lower income at retirement. The tax "deferred" retirement plan only postpones the taxes. Whether your actual tax is going to be higher or lower at retirement in the unknown factor.

There are better retirement options for business owners. Like the one that allows you to put up to $50,000 aside each year, that you don't have to pay your personal taxes on when you put it in or when you take it out.

it is not limited in its range of investments, it can invest in anything from old coins to old cars, or real estate, or your own business, etc.

The contribution amount is not related to how much other taxable income you took during the year. You can make the payment at any time.

It does cost 15% to put the money in, but that is drastically lower than your personal tax rates of Federal, State, Social Security, Medicare, etc.

It is also completely self directed.

Richard Fritzler
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Tax Law (Questions About Taxes)

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Richard Fritzler

Expertise

Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.

Experience

I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

Organizations
National Small Business Owners Association.
Publications
Contributing author to "The Corporate Standard Newsletter".


Publications
Contributing author to "The Corporate Standard Newsletter".
Ezinearticles.com articlesbase.com

Education/Credentials
I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

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