SEP IRA contribution after changing entities

Submitted by Anthony Saccaro on Sat, 2012-11-17 19:08

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

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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.