Frozen SEP - IRA Contribution

[Guest erepper]

Can an employer (or employee) who sponsors (or whose employer sponsors) a "frozen" SEP contribute to an Individual IRA? Thanks

[Gary Lesser]

Even if employer maintained a SEP for the year, the individuals could still establish a traditional IRA (or Roth). Where individual (or spouse) treated as active participant for year, however, the amount allowable as a deduction might be reduced. If contributions were made this year for preceeding year, the individuals may have to be treated as active participants this year.