How to handle a SEP when unable to locate former employee

We have a former employee entitled to a 2007 SEP contribution. We provided him with a copy of our Form 5305-SEP and asked him to provide information on the SEP account so we can fund it. He has to date refused to respond (must not want the money!).

What should we do. Can we open an SEP account for him without his signature?

Jim Walker



That is your only option; otherwise the contributions for the other participants will be disqualified.
Complete all the required paperwork on his behalf, and send him a letter- explaining that the IRA was established, the amount that was contributed and instruct him to refer to the IRA agreement and disclosure statement for the terms of the account- including beneficiary designation requirements . Include a copy of the IRA agreement and disclosure statement.

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