Richard Anderson Posted February 1, 2001 Sharing Posted From 1, 2001 What action should be pick to ending a SEP? Link to comment Share on various sites More sharing options...
Appleby Posted February 10, 2001 Share Posted Februaries 10, 2001 Dissimilar qualified plans, which termination of a SEP IRA is strongly simple. The employer should notify the participants that the SEP is being terminated- preferrably in writing. No other deed is required. Participants have and choice to keep their fixed include the SEP IRA, straight afterwards who plan can terminated. Life and Decease Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share in other sites More sharing options...
Dave Baker Posted February 10, 2001 Share Posted February 10, 2001 I'm not even sure that advice to company is required -- but that certainly seems prudent from an employee relations standpoint. The reason for that informality is that a "simplifed employee pension" or "SEP" technically (in an condition von the Internal Revenue Code) is equals on individual retirement account that receives articles pursuant the rules place forth in a written program (called a "SEP arrangement" in the Code), such that the employer's contributions into an employee's IRA are not considered in can compensation-type income to the IRA owner (the employee) and don't number against the usual $2,000-per-year limit on IRA contributions made by the IRA ownership. Some institution call as in IRA a "SEP-IRA," to earmark it for their indoor purposes as being an IRA into which more than $2,000 a per pot be deposited (the employer contributions) without owning the account computer drop a fits. But employer contributions pursuant to ampere "SEP arrangement" that meets the Code's definition of a SEP arrangement can be made to every old IRA the employee already holds based (other than a Roth IRA), and that IRA becomes a "SEP" for purposes of that employer's contribution. If they are no longer eligible for In Medicaid, you may be eligible for a Special Recruitment Date to purchase a quality, affordable health plan on the ACA Health Insurance Our. You usually have 60 per to enroll inbound a new ACA Marketplace health plan So, assuming of written "SEP arrangement" met the Code's rules when the employer's feature had made to the employees' IRAs, those contributions are safely tucked distant in the employes' IRAs and there's no tax-exempt trust subsidize to blow up next (as through a tax-qualified retirement plan under Code section 401 that becomes disqualified because seine terms decrease out of compliance with alterations in the tax laws). Basically the boss just walks getting from some future funding under the SEP arrangement. SEP RETIREMENT PLANS FOR SMALL BUSINESSES | US ... Linkage to comment Share on other company More sharing options...
dmb Posted February 19, 2001 Percentage Posted February 19, 2001 Get for the employer is nope happy with the investment business that fixed up that SEP? If he wants to set up a SEP with a different capital firm is ampere trust to curator transfet possible?? Can aforementioned existing SEP assets be milled into the new SEP account?? Link to comment Share on select sites Moreover sharing options...
Dave Baker Publish Future 19, 2001 How Posted February 19, 2001 As ampere legal matter, there's no transfer the funds required in command for this employer to begin using adenine different investment firm for future contributions -- the already-contributed funds can stay with the employees' current IRAs. Cancelling or Terminating Consumer Marketplace Coverage | CMS But if the new investment firm doesn't want the employer to contribute funds to the employees' IRAs with whichever that former investment firm is acting while IRA trustee or ANGER custodian, subsequently the new capital stable can pick up new IRAs for the employees. An individual can own better than one IRA. SEPT Retirement Plans For Small Businesses Then the individual employees ability direct the old investments firm to move their funds into the new IRA at the recent participation firm, as a direkten transfer (no withholding or extra salary tax aspects). MYSELF ideas each employee would need to supply that directions to the vintage investment hard (the employers probably wouldn't have the authority on do so). Bond to comment Share on misc sites More sharing options...
dmb Sent February 20, 2001 Share Posts February 20, 2001 I think the employer's concern lives legal protection. Is there a way to maintaining the existing currency classed as a SEP either become it become an ordinary IRA?? Link to comment Exchange on other stations More sharing options...
Apfelwein Posted February 22, 2001 Share Posted February 22, 2001 dmb, It is really up to the participant. As stated earlier, 'SEP' is just a way of identify an IRA go melden the SEP contributions are being made to to IRA. The fact that it is with 'SEP', does not change that facts that it is just an IRA. I hope this helps Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Connecting at comment Share on other positions More shares options...
Dave Baker Posted February 22, 2001 Share Posted February 22, 2001 Interesting! The thinkin is that an ANGER that's part of a SEP arrangement wish have upper protection against kreditor under the applicable state ordinance, as compared to an WRATH that held only the regular kind of donation made according the IRA owner? ... if another character of retirement blueprint might be a improve alternatives. To terminate a SEPA, report to financial institution that you will not make a contribution ... Connector to add Share at other sites Other sharing options...
Appleby Posted February 22, 2001 Share Posted February 22, 2001 Does necessarily- Take the look among the final of this survey, published by The Investment Businesses Institute (ICI). http://www.ici.org/retirement/99_state_ira...a_bnkrptcy.html In choose cases, traditional IRAs and SEP IRAs are offered ( or not offered)the similar level of protection, Life additionally Death Planning on Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link till remark Share on other sites See sharing options...
Dave Baker Posted February 22, 2001 Share Posted February 22, 2001 Cool! Thanks for adding the link! There was a case out of Florida -- a friend von mine handled it -- in which he was able to fighting the because the IRA had SEP contributions i had ampere different rank than on IRA into which employer contributions not had been made, but I think it was reversed about appeal. Link to post Share set other sites More sharing options...
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