non-deductible SEP IRA contribution

I can't see there could be, since the business make contributions on a non discriminatory basis to IRA's of all qualified employees, including owner in this case. Therefore deductibility for the employee isn't an issue, be he the proprietor or other employee.

Good tax planning would delay any contributions until as late as possible in order to assess possible consequences.

ChEAr$, Harlan Lunsford, EA n LA

contribution?

you can use 8606> only for non-deductible contributions to a traditional IRA.  What if> you have Schedule C income that qualifies you to put 10k into a SEP> IRA, but your itemized deductions are so much that you wipe out your> taxable income even without taking the SEP IRA deduction.>

Having a SEP IRA doesn't disqualify you from contributing to an IRA, although the max will be $5,000 (+ if you're over 50). You might not qualify for a Roth (depending on your income), but if you have earned income, you can contribute to a traditional IRA.

why would one even want to put $$$ into a non deductible sep-ira?

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-----> real address on hobokeni or hobokenx

Because..... that may be a plan already in place by a proprietor with employees (who must be covered if he is).

Otherwise I would say scrap the plan and instead contribute yearly 6000$ max to a Roth IRA; still the best thing since canned dog food.

ChEAR$, Harlan Lunsford, EA n LA