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#1482950 - 12/20/10 07:12 PM SEP IRA
KYWoman Offline
Member
Joined: Feb 2008
Posts: 63
Kentucky
I am in the midst of a Trust Department audit. They accept SEP IRA deposits, the bank side does not, so I am not that familiar with those. I have come across a customer that is 78 and is in distribution. She apparently still works and receives SEP contributions, which the Trust Department is depositing into her one and only traditional IRA. Should she have a separate SEP IRA for these deposits? Can she even still be making SEP contributions? Any help would be greatly appreciated.

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Audit
#1483090 - 12/20/10 09:25 PM Re: SEP IRA KYWoman
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,796
You are here
See IRS

http://www.irs.gov/publications/p590/ch01.html#en_US_publink1000230720

Is the WD considered a minimum distrubution or a rollover? That would be the first question. Minimum dist. can not be rolled into another IRA
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#1483093 - 12/20/10 09:27 PM Re: SEP IRA edAudit
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,796
You are here
Age 70½ rule. Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year.
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Opinions can be considered as coming from anywhere but my employer.

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#1484381 - 12/22/10 09:12 PM Re: SEP IRA KYWoman
el guapo Offline
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el guapo
Joined: Jul 2004
Posts: 345
Originally Posted By: KY Woman
I am in the midst of a Trust Department audit. They accept SEP IRA deposits, the bank side does not, so I am not that familiar with those. I have come across a customer that is 78 and is in distribution. She apparently still works and receives SEP contributions, which the Trust Department is depositing into her one and only traditional IRA. Should she have a separate SEP IRA for these deposits? Can she even still be making SEP contributions? Any help would be greatly appreciated.


Hello,

She does not need a seperate IRA account for the SEP contributions, and yes her employer can make SEP contributions for her if she is receiving a salary. If she is self employed the answer is still the same, yes she can make a SEP contribution into any Traditional IRA she may have. Being over 70 1/2 only prohibits an individual from making regular Traditional IRA contributions.

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