Jump to content

SEP Contribution in year of business closure


Recommended Posts

I have a doctor who is a PC and they closed down their business in September 2019.  The last paychecks went out to employees in September.  The doctor wants to do a SEP contribution for himself in 2019 -- the PC has not been dissolved yet, but employees have rolled or taken distributions from their respective SEP accounts.  Would the client still be obligated to pay the former employees a SEP contribution for 2019 if he takes one for himself?

Link to comment
Share on other sites

6 hours ago, K. Hutcherson said:

I have a doctor who is a PC and they closed down their business in September 2019.  The last paychecks went out to employees in September.  The doctor wants to do a SEP contribution for himself in 2019 -- the PC has not been dissolved yet, but employees have rolled or taken distributions from their respective SEP accounts. 

Doesn't matter if the employees have take the funds out or not.

Would the client still be obligated to pay the former employees a SEP contribution for 2019 if he takes one for himself?

You betcha!

 

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...