SEP IRA Emplopyee
A business owner sole practice has a SEP IRA for himself and now years later had hired an employee (3 years ago) who qualifies for contributions.
Does account for the employee have to be set up with the same investment firm as the business owner or can the employee pick their own adviser/money manager?
Permalink Submitted by Alan - IRA critic on Thu, 2021-10-07 18:31
It’s up to the employer who will be making the contributions. The following is copied from the IRS site regarding SEPs.
“Can each of my employees choose a different financial institution for his or her SEP-IRA?Although the law does not require each participant’s SEP-IRA to be at the same financial institution, the institution that offers or administers the SEP may require you to deposit SEP contributions initially into SEP-IRAs maintained at that institution. ”
Permalink Submitted by David Berdow on Thu, 2021-10-07 18:32
Thank you