Has California conformed to the 25% SEP limitation?
March 5, 2003
Subject: 2002 SEP Contributions
Date: Mon, 17 Feb 2003
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.
Date: 28 Feb 2003
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.)
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