SEP IRA acct holder is not longer with the employer
what is the maximim contribution amount a SEP IRA acct holder can make if no longer with the same employer?
Could they make regular contributions to their SEP IRA?
what is the maximim contribution amount a SEP IRA acct holder can make if no longer with the same employer?
Could they make regular contributions to their SEP IRA?
Permalink Submitted by mk foss on Tue, 2009-01-13 04:00
I’m not sure that I understand the question.
If the SEP plan was sponsored by the former employer, the employee would be able to put his/her maximum IRA contribution into that SEP in lieu of another IRA. That amount would be determined based on the employee being covered by a retirement plan. A single person would need AGI of 53,000 or less to deduct the maximum IRA contribution ($5,000 under age 50) for 2008.
A $5,000 nondeductible IRA contribution could be made to a separate IRA or to a current or former employer-sponsored SEP.
The employer contribution to a SEP is a maximum of 25% of gross salary up to $46,000. If the employer choses not to contribute the maximum, the employee CANNOT make up the difference.