sep ira
My employer told me to open an account with a broker and then they will send a check directly to it for a SEP IRA. Is this the way it is done, or can I have them send the check to a fund that I open? This is 2007 money and I have already maxed out my Roth IRA for 2007.
Permalink Submitted by Denise Appleby on Mon, 2008-01-28 00:20
That is one way to do it.
If your employ told you to choose [i]any [/i]broker, then it is likely that you can choose a fund company of your choice with which to maintain your IRA. You would need to check with the fund company to determine if they need a copy of your employer’s SEP adoption agreement, as they may need it to flag the account as a SEP IRA.
If your employers uses a 5305-SEP, you can maintain your SEP IRA with any financial institution, providing that financial institution is authorized to hold IRAs.
If your employer uses a [url=http://www.retirementdictionary.com/Prototype-Plan.htm%5Dprototype%5B/url%5DSEP document, which is a SEP document that is customized for use by a specific custodian, then it may include a requirement that your IRA must be held with that custodian.
Your employer will need to make the check payable to your custodian, FBO Your IRA. For instance, ABC Custodian, FBO Jane Smith SEP IRA