could a 701/2 or older SEP IRA acct holder still contribute?
We have SEP IRA employer that thinks they can contribute even after employees are 701/2 years of age. is that correct?
We have SEP IRA employer that thinks they can contribute even after employees are 701/2 years of age. is that correct?
Permalink Submitted by Alan Spross on Tue, 2009-04-28 22:04
Yes, that is correct for SEP and SIMPLE IRAs because these accounts have contribution rules similar to employer plans. But they are also subject to RMDs at age 70.5 as IRAs and therefore someone subject to RMDs might be contributing and taking RMDs in the same year.
Permalink Submitted by mk foss on Wed, 2009-04-29 17:47
The SEP employer could have problems if he did not contribute for all employees eligible to be in the plan.