Hello - I have a SEP IRA account that was created by a previous employer 20 years ago. I no longer work for that employer and am self-employed. The account is still open and active. Am I able to make a tax deductible contribution to that old SEP account or do I need to open a new account?
You can't but your business can on a schedule C. Entered in TurboTax "Home & Business" under Business -> Business Income & Expenses -> Less Common Business Situations -> Self-Employed Retirement.
Hi macuser_22,
Thanks for your answer! Yes, that would be my plan - to do so as a contribution via my business. My concern is that the account was initially set up by a former employer. As far as I can tell it's completely in my name. I'm not sure if IRS tracks these accounts by who created them or by the type of account and whose name is on the account. I will be checking with the brokerage to find out if there is any other ownership information on the account, besides what I have access to. From what I can see, there's no link to my former employer, but that doesn't mean that her information isn't somehow associated with the account
Thanks again!
Yep. Did that and have decided to open up my own account because, although only my name and SSN are associated with the account, if IRS were to investigate, they'd see that the agreement paperwork was initially set up with my former employer. Thanks for your time!!
You can simply have the financial institution do a trustee-to-trustee transfer of the existing SEP to a new SEP account.
@MDGoodin wrote:
Yep. Did that and have decided to open up my own account because, although only my name and SSN are associated with the account, if IRS were to investigate, they'd see that the agreement paperwork was initially set up with my former employer. Thanks for your time!!
The IRS does not care who opened the account. They only care whose name and SSN are associated with the account.