K. Hutcherson Posted December 12, 2019 Share Posted December 12, 2019 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 More sharing options...
Bill Presson Posted December 12, 2019 Share Posted December 12, 2019 Once the money goes in the SEP accounts, they belong to the participant and what they do with the money has nothing to do with whether they are eligible to get a contribution this year. Just apply the eligibility requirements and make the contributions. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
Larry Starr Posted December 12, 2019 Share Posted December 12, 2019 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 More sharing options...
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