Reviving an old SEP

[steve-o]

I have a Schedule C client who started a SEP in 1996. Contributions were made for a couple of years before the client took a job with W-2 wages. Now, in 2006, the client returned to the Schedule C world and wants to make a contribution to the SEP. Can this be done? Or does the plan terminate if contributions aren't made after a certain number of years? Will a new SEP need to be established?

[Bill Presson]

I have a Schedule C client who started a SEP in 1996. Contributions were made for a couple of years before the client took a job with W-2 wages. Now, in 2006, the client returned to the Schedule C world and wants to make a contribution to the SEP. Can this be done? Or does the plan terminate if contributions aren't made after a certain number of years? Will a new SEP need to be established?

I would have him sign a new form, but the money could be contributed to the same account.

[Appleby]

Are we talking a SARSEP? Asking because you mentioned 1996

[steve-o]

This was not a SARSEP. I believe we are proceeding with the client signing a new form and starting a new account. Thanks for the input.