SEP IRA contribution to a Trad IRA
I have a self employed client whom is eligible to make a $15,000 contribution to a SEP IRA for 2021. She is the only employee and currently has no SEP IRA established.
She does has a Trad IRA, I believe she can make the employer SEP IRA contribution to her existing Trad Ira vs. opening a SEP IRA.
Is this true? I read only employer SEP IRA contributions can be made to a Trad IRA but confused by this info since employees can’t make SEP IRA contributions.
Any clarification is appreciated…..
Permalink Submitted by Alan - IRA critic on Tue, 2022-03-22 02:42
Yes, it is true, but it is probably not wise due to possible confusion over the type of contribution reported by the IRA custodian. The following article explains:
You Don’t Have to Keep Your SEP IRA Funds in a SEParate IRA | Ed Slott and Company, LLC (irahelp.com)