Multiple SEP accounts
We have a client who was a member of an LLC for half of this year. He is eligible to make an employer SEP contribution for 2013. He left that company and started a new firm. Does anyone know if he is eligible to max out employer SEP contributions for both the new and old company? Assuming he has enough income in both companies. He is no longer a control person in the previous company so we are not sure how the IRS control person rules come into play here. Would he be able to put away $51,000 in each? If the remaining partners in his old firm want to max out their own contributions, they would be forced to max out his as well. Where does that leave him with respect to his SEP options in the new company.
Permalink Submitted by AdvantaIRA Team on Thu, 2013-07-11 15:39
They should be able to contribute to both accounts. As long as the total SEP contributions that he makes between the two do not exceed $51,000. Follow us on Twitter https://twitter.com/AdvantaIRATrustWebsite: advantaira.com