gonzalezk
Mar 25 2001, 06:49 PM
If my employer offers a SARSEP Plan but I have never signed up for the plan, can I still take the deduction from a Traditional IRA ?
I asked my employer about this and he assures me that I can take the IRA deduction. According to Publication 590, I cannot take the deduction if my employer OFFERS a pension or annuity plan. I don't want to get penalized by the IRS if my boss is incorrect. Is a SARSEP plan considered a pension or annuity ?
AFRICA6796
Apr 5 2001, 06:20 PM
It seems you employer is right.
Check this site
http://www.irs.ustreas.gov/forms_pubs/pubs...bs/p5900108.htm
A SARSEP is NOT a pension or annuity plans
gonzalezk
Apr 5 2001, 09:02 PM
Actually, I found out already but your help is appreciated. I read that publication but it didn't mention anything about SARSEP specifically. But now that you have informed me that it is not a pension or annuity plan, I can definitely take the IRA deduction.
Thanks again.