SEP IRA Self Employed
A self employed person set up a SEP IRA in his name/tax ID number in a previous year.
The group that he does business with required him to get a Tax ID number and establish an entity. The income now flows through that entity/tax ID number.
Does the self employed person need to set up a new SEP IRA account (in the EIN/business name), or can he still continue to use the SEP IRA account that is in his individual tax ID number?
Thank you!
Permalink Submitted by Andy Reynolds on Wed, 2024-03-06 17:05
Also, to clarify, it is a disregarded Single Member LLC
Permalink Submitted by David Mertz on Wed, 2024-03-06 20:50
The SEP IRA belongs to the individual, not to the business, and is tied to the individual’s SSN. There is no requirement to establish a new, separate SEP IRA which would necessarily be tied to the same SSN.
Permalink Submitted by Andy Reynolds on Wed, 2024-03-06 21:18
Separate question, but this intrigued me…
Say a taxpayer works for 3 separate companies, as a W2 in each company and owns 0% of each company.
If each company has a SEP IRA, can the contributions from each company go into one single SEP IRA? Or would the taxpayer need to have a SEP IRA associated with each company?
Is the reason he doesn’t need a separate SEP IRA because his entity is a single Member LLC (disregarded)?