Guest Randy Ehle Posted October 11, 2000 Report Share Posted October 11, 2000 May a SEP-IRA holder receive an employer contribution to the SEP after age 70-1/2 if he/she is still employed? Link to comment Share on other sites More sharing options...
Michael Devault Posted October 11, 2000 Report Share Posted October 11, 2000 Yes, if the employee is still employed at or after age 70-1/2, the employer is required to contribute to their SEP on the same basis as other qualified employees. The bad news is that the contribution and earnings must be taken into consideration in determining the amount of required minimum distributions for the following year. The IRA account value on the preceding December 31 is used to determine the RMD, and the account would include any SEP contributions and earnings thereon. Now you know why the call it the Code! Hope this helps. Link to comment Share on other sites More sharing options...
Recommended Posts
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 accountSign in
Already have an account? Sign in here.
Sign In Now