SARSEP or not?
Can SARSEP (Pre-97 Plan) contributions be made to any form of IRA established by the employee given that plan assets can now be co-mingled?
We established a SARSEP in June of 1996 and ran it in that fashion for a number of years. When transferring the plan assets to a new custodian (5/2005) the plan was erroneously established as a SEP (5305) and not SARSEP (5305A). The plan contributions were made and accepted by this custodian and the next custodian, as well.
Now, many years later, the plan structure and operation is being questioned by the current custodian, looking for proof that the plan was actually a SARSEP. We have maintained the 5305A Agreements through out the time period while directing the contributions to the custodians of choice.
I maintain that we have a SARSEP plan. Do we have a leg to stand on?
Permalink Submitted by Denise Appleby on Fri, 2008-07-11 14:17
[quote=”kevin”]Can SARSEP (Pre-97 Plan) …
Now, many years later, the plan structure and operation is being questioned by the current custodian, looking for proof that the plan was actually a SARSEP…quote]
They are overstepping their bounds. When you sign the SARSEP form, indicating that the SARSEP was established by 12/31/1996 and that you do have a SARSEP in effect, that should be sufficient for them.
Remind them of that fact.