SEP IRA Contributions

For SEP IRAs, employers may contribute 25% of compensation (indexed annually; $53,000 for 2016) for each employee. This is referred to as the employer contribution.

Employers have until the due date of the federal income tax return of the business, including extensions, to establish and make SEP contributions. However, according to IRS reporting instructions (see form 5498), all SEP employer contributions must be reported in the year the financial institution receives them, not the year for which they are intended.

The above rules generally apply to SEP IRA holders. For specific information about your personal tax situation, please consult your tax advisor.

IRA Contribution Forms

Please visit our Forms Center for forms needed to complete your yearly IRA contributions.

This material is for informational purposes only and Scottrade is not responsible for any errors or omissions. The information is subject to change without notice and should not be construed as a recommendation or investment advice. Please consult your tax or legal advisor(s) for questions concerning your personal tax or financial situation.