Thread Options
#2155792 - 12/01/17 08:54 PM SEP Contribution
SunnyFL, CRCM Offline
100 Club
Joined: Sep 2004
Posts: 205
FL
Do you know if there is a regulatory prohibition against making contributions to a SEP account during the term of the Certificate of Deposit or is this a decision made by the bank.

Return to Top
Deposits and Payments
#2155795 - 12/01/17 09:01 PM Re: SEP Contribution SunnyFL, CRCM
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,207
Illinois
Bank decision and something that should be addressed with your ALCO committee. The committee may decide that additional contributions should be made to a new certificate. Remember that the SEP is the umbrella of the retirement plan. There can be as many certificates under that umbrella as you want that make up the assets contributed to the SEP. The money does not all have to be in the same bucket.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top
#2155813 - 12/02/17 12:27 AM Re: SEP Contribution SunnyFL, CRCM
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Generally, it's irrelevant that the time deposit is held by a SEP/IRA.

Take a look at your TISA disclosure. It must disclose any limitations on a time deposits. In all likelihood, it says no additional deposits are permitted.

Yet, some banks do offer time deposit open accounts (TDOA's). Their disclosures clearly indicate additional deposits are allowed. However, the banks offering TDOA's make a conscious decision to offer the product in the ALCO environment that Brian mentions. They do not do it in "one off" decisions where the proper disclosures are not in place.
Last edited by Ken_Pegasus; 12/02/17 04:32 PM. Reason: Rewritten
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#2155866 - 12/04/17 03:45 PM Re: SEP Contribution Elwood P. Dowd
SunnyFL, CRCM Offline
100 Club
Joined: Sep 2004
Posts: 205
FL
Great info Gentlemen....Thanks much.

Return to Top

Moderator:  John Burnett