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vdeyet18
Level 1

Hi guys, I set up a SEP-IRA and made a contribution to it from the business account. How do I record that, is it an Owner’s Withdrawal, or a business expense? I am a single member LLC taxed as a sole proprietor. I am using Quickbooks Online

Hi guys, I set up a SEP-IRA and made a contribution to it from the business account. Is this a business expense? And what's the proper way of recording the expense? I am not an employee, i am self employed funding my own SEP-IRA through my business.  I am a single member LLC taxed as a sole proprietor. I am using Quickbooks Online

4 Comments
Rustler
Level 15

Hi guys, I set up a SEP-IRA and made a contribution to it from the business account. How do I record that, is it an Owner’s Withdrawal, or a business expense? I am a single member LLC taxed as a sole proprietor. I am using Quickbooks Online

No it is not a business expense, it is an equity draw.  enter the payment and use owner equity drawing as the "expense" for the payment

 

And the SEP_IRA is personal and does not belong in the business accounting

margebisbee
Level 1

Hi guys, I set up a SEP-IRA and made a contribution to it from the business account. How do I record that, is it an Owner’s Withdrawal, or a business expense? I am a single member LLC taxed as a sole proprietor. I am using Quickbooks Online

They answer from Rustler level 15  to this question was it correct or not. I went to cheers and it said did not match question??

Please help.

MadelynC
QuickBooks Team

Hi guys, I set up a SEP-IRA and made a contribution to it from the business account. How do I record that, is it an Owner’s Withdrawal, or a business expense? I am a single member LLC taxed as a sole proprietor. I am using Quickbooks Online

Thanks for joining this thread, @margebisbee.

 

When it comes to concerns posting, the system will automatically generate a match. This is to make sure that every posted question falls into the right scope or right answer.

 

Regarding the Community backer Rustler recommendation, it depends on the customers. Since it’s accounting advice, you’re the only one who can tell whether it’s helpful or not.  

 

I have here some resources to learn more about retirement plans and pay type descriptions. It includes information on how you can expect each item to affect your payroll tax reporting.

 

Also, check out this link here about the SEP-IRA plan for additional details. I’m sure you’ll find it helpful. 

 

Keep posted if you have any other QuickBooks concerns. We’ll be around to help. Always take care.

neilhschwartz
Level 2

Hi guys, I set up a SEP-IRA and made a contribution to it from the business account. How do I record that, is it an Owner’s Withdrawal, or a business expense? I am a single member LLC taxed as a sole proprietor. I am using Quickbooks Online

How is an "equity draw" different than an "owner's draw" , one that I regularly use to pay myself? And how is it catagorized?

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