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Deadline to open a SEP IRA Extended: due date of return
Deadline to contribute to a SEP IRA: business tax filing deadline, plus extensions
|Year||Maximum Contribution||Contribution Deadline|
|2019||$56,000||Business tax filing deadline, plus extensions|
|2018||$55,000||Business tax filing deadline, plus extensions|
|SEP IRAs must be established by the employer's tax filing deadline (plus extensions) for the tax year to which the qualifying contribution(s) will apply.|
Contributions to a SEP IRA can be made up to the due date, including extensions, for filing your tax returns. This means that contributions for a given tax year can be made up to the final tax filing date the following year.
A sometimes confusing part of SEP IRA contributions is that all SEP contributions for a given tax year are usually made the following calendar year (as the company generates their tax filing), and are often reported to the IRS by the IRA provider on a 5498 the year after that. As a consequence of this reporting timetable, the 5498 shows a SEP contribution as having occurred the year after the tax year for which the contribution is made. This sequence is proper from an IRS perspective, but it requires the company keep track of which contribution corresponds to which tax year and claim the SEP contribution deduction in the correct year.