TN 10 (09-90)
Under a SEP plan an employer contributes to an employee's individual retirement account
or individual retirement annuity (IRA), subject to the conditions of sec. 408(k) of
Employer (but not employee) contributions to IRA's were:
Wages for Social Security purposes; i.e., they were counted for computation and annual
earnings test purposes, but
Not wages subject to FICA.
Employer contributions are not wages for Social Security purposes.