lexi Posted September 17, 2007 Posted September 17, 2007 An independent contractor contributes a portion of his SE income to a SEP IRA. The independent contractor also is participating in the company's MPPP. Any thoughts for correction?
Guest bruss Posted September 17, 2007 Posted September 17, 2007 An independent contractor contributes a portion of his SE income to a SEP IRA. The independent contractor also is participating in the company's MPPP. Any thoughts for correction? An independent contractor could not have been participant in the MPPP.? Did they also have wages?
lexi Posted September 17, 2007 Author Posted September 17, 2007 No, no wages. And yes, it's clear we have to move the MPPP account balance. Maybe into a nonqualified trust?
Bird Posted September 18, 2007 Posted September 18, 2007 If he didn't have wages then he's not entitled to anything in the MPP. Those contributions should be held and used against future contributions. Probably some messy cleanup with prior deductions. One of those situations where the more you think about it, the worse it gets. Ed Snyder
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