SEP IRA contribution after changing entities
Hello,
In 2010, I contributed to a SEP IRA as a sole proprietorship. In 2011, I changed my business structure to an S Corp and am no longer using the sole prop and I made no IRA contributions or any other retirement contributions that year. In 2012, I want to make a contribution to a retirement account and am in the process of determining which is the best way to go. My question is this; is there any reason I can’t convert my sole prop SEP IRA, which I began in 2010, into a SEP owned by my corporation and make a contribution into the same account?
Thank you,
Anthony
Permalink Submitted by Alan Spross on Sat, 2012-11-17 20:37
You should check with your SEP IRA Custodian and complete a new 5305 SEP form showing the corporate name. They may allow you to continue the same SEP account for the employer change or they may want you to open a new one account. The IRS does not object to either. Of course if you have employees now, there will be employee notifications etc.
Permalink Submitted by Anthony Saccaro on Fri, 2012-11-23 06:53
Thank you!