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SEP/Keogh requirements?
Q: Can a SEP/Keogh be set up for a side business even if you are covered by a pension plan at a full-time job?
A: Yes! You can have your own fully deductible retirement plan even if you are covered by a plan at your full-time job. The maximum contribution/deduction amount is approximately 13% of your net Schedule C income for a SEP-IRA and 20% for a Keogh. A Keogh must be set up by December 31 of the tax year for which you want to take the deduction. A SEP, on the other hand, can be set up and funded as late as the extended due date of your tax return (which can be as late as October 15 of the subsequent year!)
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