Hello-
Client set up a SEP-IRA at a custodian that uses the standard 5305-SEP form in early 2021. They have been making contributions ever since (2020-2023 tax years) for a single employee.
The 5305-SEP was sent to them as a PDF but they either lost the signed form or never printed and signed the 5305-SEP PDF. Is this a simple fix- print and sign the 5305-SEP as of the 2021 date or more complicated?
Thank you!
They have been making contributions as required by how the 5305-SEP was completed- 21 yrs old, 1 yr service credit, does not include employees under collective bargaining, does not include certain non resident aliens, does not include employees whose compensation is less than $450.
Based on these rules there was only one individual eligible. All contributions for this individual have been made. It just seems possible they never actually signed the form even though there is a copy with it completed (unsigned).
If there is no known issue and he remembers exactly what the original form specified and cannot get a copy from the SEP custodian, he should complete a new form, sign it now, be sure the employee is given a copy and make a note with the form that the original 5305 was lost.
Permalink Submitted by Alan - IRA critic on Thu, 2024-05-30 15:21
Depends on the situation. Is there an issue with the employee or with a new employee where client does not recall how many prior years of service are required? Sounds like a copy of the 5305 was never provided to the employee as required? Has client been making contributions for themself as an eligible employee, as contributions should be made for all eligible employees or none of them?