S Corp Simple IRA contribution and wages – after S Corp Income ceases

Our client’s source of income ceased this last year but they continued paying themselves a salary and withholding simple IRA contributions in 2023. They had a large amount of money in the S Corp so could afford to pay the wages.

Since wages were paid, do they have to return the simple IRA contributions to the S Corp?



Schwab has a note on their IRA application, that the maxium age is 18 for a custodianship inherited IRA.  Is that the law or is that just a Schwab requirement.  This is a California resident where the maximum age for a UTMA is 25. Many thanks as always …. Mary

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