Nondeductible SEP Hi,
I have an S Corp that's a single employee business where I did not file a W2. I have not yet filed my 2016 return.
I made employer contributions to a SEP IRA for 2016, but now I'm told that those SEP IRA deductions are non-taxable with the way the business is set up (i think I would have had to go the W2 route to make those deductible). The tax accountant said to change to a W2 at this point would be very expensive.
So, now I have this SEP IRA that I'm worried about being double taxed on. I have a substantial amount of IRA money, so if I convert to a Roth, I think the pro-rata rule kills me.
I don't really need the money today or care about whether I get a tax deduction today or down the road, I just don't want to be double taxed on it.
Is there any easy way out of this?
Thanks in advance! |