Definition of INACTIVE SEP

Submitted by Richard Brown on Tue, 2014-12-23 17:51

B. DeVeny’s report on the Extension of the QCD’s says an INACTIVE SEP is eligible. How do you determine that a SEP is an INACTIVE SEP? None of the dozen or so sources I have looked at, both private and the IRS website, mention an INACTIVE SEP and the local IRS office didn’t know either. Where can I find this?



Submitted by Alan - IRA critic on Tue, 2014-12-23 18:55

Copied from Notice 2007-7 Q 36: 

Q-36. Is the exclusion for qualified charitable distributions available for distributions from any type of IRA? A-36. Generally, the exclusion for qualified charitable distributions is available for distributions from any type of IRA (including a Roth IRA described in § 408A and a deemed IRA described in § 408(q)) that is neither an ongoing SEP IRA described in § 408(k) nor an ongoing SIMPLE IRA described in § 408(p). For this purpose, a SEP IRA or a SIMPLE IRA is treated as ongoing if it is maintained under an employer arrangement under which an employer contribution is made for the plan year ending with or within the IRA owner’s taxable year in which the charitable contributions would be made.

Add new comment

Log in or register to post comments