Has California conformed to the 25% SEP limitation?

March 5, 2003

Subject:  2002 SEP Contributions
From:  Richard
Date:  Mon, 17 Feb 2003

Mike,

I saw your taxtrimmers.com website and the Q&A about 2002 SEP contributions. Did California's conforming to the federal limit of 25% ever get settled?

I am self-employed with no employees so I assume my contribution limit is now 25/125 (20%) as I believe my limit previously was 15/115 (13.xxx%).

Thanks for the site and I'll certainly try to refer some people your way.

-Dick

Answer

Date:  28 Feb 2003

Hello Dick,

The litigation about whether California's tax legislation signed by Governor Davis during 2002 was legally passed is not concluded. Meanwhile, I don't think you will be penalized in following the new rules as they are being administered by the Franchise Tax Board. (Use the new limitation.)

Good luck!
Mike Gray

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