SEP IRA

Submitted by Stuart Cameron on Tue, 2017-01-31 19:31

2 Brothers who own a Plumbing LLC open a SEP IRA. What happens if eligible employees fail to open an account to receive the employer contribution?



Submitted by Alan - IRA critic on Tue, 2017-01-31 20:19

The employer opens a SEP IRA for each such employee and makes the required contribution to those SEP IRAs.

Submitted by Stuart Cameron on Tue, 2017-01-31 20:24

Thanks ALan, but the employee has to complete the applications etc.  What happens if they just dont bother….Sounds strange I know, free money.

Submitted by Alan - IRA critic on Wed, 2017-02-01 01:39

The employer should be able to open the account since they are required to make contributions for all eligible employees. Does the employer have all this info?  If so, does the institution lack experience with SEP IRAs?

Social Security number and date of birthA valid mailing and email addresses

  • Employment information (including company name, address, and start date)

  • General financial information (such as annual income and household net worth)

  • Names and dates of birth for any beneficiaries

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