SEP IRA – ER didn’t contribute to eligible employees
I have a client (business owner) that has a SEP IRA. He made a contribution to his own SEP IRA but did not fund his eligible employees accounts. What are his options? Is there a penalty? Thanks!
I have a client (business owner) that has a SEP IRA. He made a contribution to his own SEP IRA but did not fund his eligible employees accounts. What are his options? Is there a penalty? Thanks!
Permalink Submitted by Alan - IRA critic on Mon, 2015-05-04 19:23
See Revenue Procedure 2008-50. The employee accounts must be funded including applicable earnings.