SEP IRA for S CORP Questions

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
MathewMorgan
Posts: 1
Joined: Fri Jun 25, 2021 11:57 am

SEP IRA for S CORP Questions

Post by MathewMorgan »

My wife and I have our own business. We are now co-owners of the business. We have 1 SEP IRA in her name but want to clarify that we are contributing correctly before we set up a second SEP IRA in my name. Do we contribute 25% of the W2 line 1 "Wages, tips, etc"?

We have her salary at only $40,000 so that would mean we can contribute $10,000. Can we also contribute $6,000 to a Roth IRA? Should we raise our salaries if we want to contribute more for retirement?
Post Reply