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SEP contribution for Cash basis S-Corp (but done following year)

dontworryaboutitdontworryaboutit Member Posts: 20

S-Corps can contribute to employee SEP IRA and have until their tax filing deadline to do so (March 15 + extentions). The deduction is made on line 17 of the 1120S for the year it relates to.

Question:

For a CASH basis S-Corp, assume SEP contributions (destined for 2020) are pulled from the S-Corp bank Feb, 2021. How should this transaction be recorded on the books?

in Accounting Technical Support

Comments

  • NancyCNancyC Member Posts: 148 admin

    Hey @dontworryaboutit , I wanted to clarify that as us here at Wave are not accountants, we won't be able to give complex accounting advice and I would recommend that you refer to an accountant on this. However, I was able to locate a post from last year where another user asked about accounting for SEP IRA contribution that was answered by another user who is a CPA. You may find this post helpful!

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