New Agreement Required?
Hello-
New client (and their employee) have a SEP IRA at Custodian A. The client wants me to manage their SEP at Custodian B. Would the client need to sign a 5305-SEP when establishing the SEP at Custodian B? Or just establish the account since it is a rollover from another institution?
Thank you!
Permalink Submitted by Alan - IRA critic on Tue, 2021-10-05 23:26
The new custodian might want a copy of the current 5305, particularly custodians like Schwab who offer their own prototype SEP. However, if should not be necessary to complete a new 5305 and provide copies to the employees. The custodian name is not included on the 5305, which is basically an agreement between the employer and employees.
Permalink Submitted by IRAQuestion5 on Wed, 2021-10-06 19:41
My understanding is no form 5305 was done as it was at a place like Schwab that has their own prototype SEP. Would he then need to complete one since he is moving away from that custodian? Or does the fact the fact that his employee still has his SEP at the old custodian negate that?