sep/ira registration
DEAR SIR
WE TRANSFERRED OUR RYAN MILLER YAW-KINNEY CO SEP IRA AND GAIL P MILLER YAW-KINNEY CO SEP IRA
TO A DIFFERENT BROKERAGE FIRM. THE PAPERWORK WAS NOT COMPLETED WITH THE COMPANY NAME.
WHEN THEY WERE OPENED AT THE NEW FIRM THE ACCOUNTS READ: GAIL P MILLER (SEP) AND RYAN MILLER(SEP).
IS THIS OK AS FAR AS THE IRS WOULD BE CONCERNED. NO DISTRUBUTION HAS BEEN MADE. AT THIS POINT WHAT
WHAT SHOULD WE DO? THANK YOU. REGARDS, RYAN MILLER
Permalink Submitted by Marvin Rotenberg on Thu, 2010-01-21 22:51
A SEP IRA works very much the same as traditional IRAs other than in a SEP the employer contributes.
You can not have an IRA or SEP IRA in joint name. It mist be an individual account. This will have to be fixed. I would suggest you communicate with the IRA custodian. The accounts shoud have never been combined. One way to fix the situation is to have the custodian put the money back into the respected SEPs and start over and then open two IRAs one for each person and then do the transfer. It is OK to have one SEP plan covering both employees but the contributions must go into the seperate accounts.
Marvin
Permalink Submitted by Anonymous (not verified) on Sat, 2010-01-23 03:55
I agree. A SEP is like a Traditional IRA. It must be registered under an individual’s SSN and cannot be in joint ownership (under 2 SSNs or a tax id). The registration title should at least have the owner’s name in it. Companies may be flexible on what you can add in that line. I would have a stern talk with your custodian to get this fixed, because once tax forms fly out it may be more difficult…..
pmk