REPAIR A SEP IRA
The S Corporation’s SEP has been in existence for 4 years. So far contributions have only been made for the 80% Shareholder. Other employees include his wife, a 20% shareholder, and a bonafide employee. How do I correct the lack of contributions to the other 2 employees and what are the penalties even if the Corporation voluntarily corrects it?
Permalink Submitted by Alan - IRA critic on Tue, 2015-05-12 21:59
This may help. Probably needs to be addressed through the SCP (self correction program), and not the VCP (voluntary correction program). http://www.irs.gov/Retirement-Plans/SEP-Fix-It-Guide-The-plan-excluded-eligible-employees-from-participating-in-the-SEP