Ask TaxMama.Com Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA

Travel Resource Overlooked Charity Deduction? S-Corp Not So Mixed-Up Education Credits Executor Fee Selling The Farm Lost Job - Knows Too Much   Deductible Taxes   Send In Mother!   E-Mail  This Page To A Friend Your email: Your name: TO email:

Executor Fee » From: Taylors, SC Dear TaxMama: Can you include a non-professional executor fee that is earned in your SEP contribution calculation? Thanks! Love your site .... Rebecca Dear Rebecca, Good question. And I am not sure, so I asked the Pros. Here's my opinion: We've already established that it's not subject to SE tax. (If she were a professional, it would be.) So, if it's not self-employment income, does that mean she can't use it for the SEP limit computation? But one of the Pros puts it SO well: If the executor fee is not subject to SE tax, it's not eligible for the retirement plan contribution. That's the you-can-not-have-your-cake-and-eat-it-too rule under (I believe ) section 1402. -Jim <And Rebecca Replied> Thanks for getting back to me on the non-professional fees being included in the SEP contribution. I was talking to the attorney for the estate and mentioned the question to her. She said that the IRS has allowed the inclusion of non-professional executor fees in the SEP contribution for approximately 10 years. I'm not sure what I'm going to do now, but thought that I would pass that on to you in case you ever encounter this question in your own practice. Thanks again for your response, Rebecca <And TaxMama's Final Bit of Advice?> Hi Rebecca, Get her to put it into writing? Then do it. That's good to know. Best wishes, Eva Rosenberg Your TaxMama

Click Here to Subscribe to the Internet's Help Desk

Library of Congress -  ISSN 1532-0790 Copyright © 2000-2003 - Eva Rosenberg

Subscribe | Ask TaxMama ~ Send Her Your Questions | Site Search Home | This Week's Issue | Articles by TaxMama | For Tax Pros Investment Secrets | IRS News | Smart Tax Moves | Critical Dates Using Money Wisely | Money Funnies & Inspiration | Because We Care About TaxMama | Our Privacy Policy | Legalese and Disclaimer |

Certain graphics on this site were created especially for TaxMama by Serenata of Serenata Design. Site design & maintenance by Serenata Design.