SEP IRA – Multiple Employers
Have a client who contributed to a SEP IRA last year for a partnership he is in. Won’t be making a contribution this year from the partnership, but has Self-Employed income from which he can contribute. Can the contributions from the SE income go into the existing SEP account, or must a different SEP be established since it is funded from a different employer? Thanks!!
Permalink Submitted by Alan - IRA critic on Thu, 2014-12-11 19:29
Making the SE income contributions to the existing SEP IRA is OK with the IRS, but the SEP IRA custodian may not allow it.
Permalink Submitted by Brian Bishop on Thu, 2014-12-11 19:57
So would you suggest just setting up a separate SEP IRA for 2014?
Permalink Submitted by Alan - IRA critic on Thu, 2014-12-11 21:22
Either that or check with the current SEP custodian to see if they permit SEP contributions from a different employer. Most custodians permit non SEP contributions to a SEP IRA (must be specifically identified as such), but not sure how many would allow SEP contributions from more than one employer.
Permalink Submitted by Brian Bishop on Fri, 2014-12-12 13:40
Very helpful – thanks for advice!!