SEP IRA contribution to 401k account
Ex-employee of company with SEP IRA plan. She is eligible for a SEP contribution. She is a current participant in a 401k, but has no IRA accounts. Can the SEP contribution go into her 401k, or does the company have to set up an IRA for her?
Permalink Submitted by David Mertz on Mon, 2016-10-03 18:38
The former employer cannot make a contribution to her 401(k) account with the current employer. The company with the SEP-IRA plan must make a contribution to a SEP-IRA account in her name. The SEP-IRA could subsequently be rolled over to the 401(k) if the 401(k) plan will accept such a rollover.