Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
dcramsey
Level 1

Can an employer contribute to two separate sep ira acounts for emplyees?

My S corporation (one employee/officer) has two separate sep accounts set up.  Is it possible to contribute to both accounts in the same year as long at total contributions don't exceed limits?

2 Replies
dmertz
Level 15

Can an employer contribute to two separate sep ira acounts for emplyees?

Yes.  It doesn't matter what SEP-IRA owned by an individual employee receives the SEP contributions.  SEP-IRAs are owned by the individual, so all of the SEP-IRAs owned by the individual can be thought of in aggregate as if they were a single SEP-IRA.  However, splitting the SEP contributions required to be made for a particular employee could create an accounting headache, particularly if the SEP plan is managed by a third party such as a payroll processing firm.

 

You can't have two different SEP plans at the same time, though.  Eligibility requirements and the contribution rate as a function of compensation for all eligible employees must be the same.

dcramsey
Level 1

Can an employer contribute to two separate sep ira acounts for emplyees?

Thank you!  I thought that this was the case, but couldn't find a definitive answer anywhere.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v