Hello I currently have a single member LLC and would like to open a SEP IRA. I have a few questions regarding this topic:
1. Do you open this using my LLC EIN or my SSN? If you open in your SSN, where do you deduct this?
2. I plan on restructuring my business at some point and am wondering if SEP IRA's are transferable to other LLCs?
3. If you have multiple single-member LLCs can you have one SEP IRA or do you need one for every LLC? If you open the SEP IRA in your SSN this question is likely irrelevant.
1. You open your SEP IRA with your SSN. A single member LLC is considered a disregarded entity and your income/expenses will be entered on a schedule C on your tax return. SEP contributions are entered in a section called Other Business Situations, Self-Employed Retirement Plans.
2. SEP IRA's are function like a traditional IRA. You can transfer funds to another custodian. The SEP IRA is owned by the individual not the LLC
3. Yes, you can have multiple SEP IRA accounts. However, the combined annual contributions cannot exceed the IRA's maximum, which is currently $53,000 or 25% of compensation, whichever is less.
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Question #3 wasn't answered. The OP asked if they MUST have separate account for separate single member LLCs or if they may COMBINE the SEP IRA contributions into a SINGLE SEP IRA account. I need to know that answer as well. Can you please answer that question?