SEP IRA Form 5305
I am reviewing a new client’s SEP IRA w- Vanguard and see that they never filed IRS Form 5305 when they opened their SEP IRA account w- Vanguard a couple of years ago. Should they simply call Vanguard and fill out a Form 5305 now or is there some special filing that they need to do w- the IRS since they missed it from inception?
For future reference, does it matter if the plan is a sole particiapant or a plan w- multiple employees for this Form?
Permalink Submitted by Anonymous (not verified) on Mon, 2009-10-26 21:25
Neither the custodian nor the IRS needs to see this form, but it must be held on file by the Employer. Normally, all SEP participants need to see a copy, but since this client is the only participant you are in luck. Vanguard has a 5305 in their SEP packet, but they will tell you [u]not[/u] to send it to them.
I think your client probably has the form filed away when he signed and dated at the plan’s inception.
http://www.irs.gov/pub/irs-pdf/f5305sep.pdf
pmk