Discussion:SEP/IRA contributions?
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Discussion Forum Index --> Tax Questions --> SEP/IRA contributions?
| 2 April 2006 | |
| Years ago a client opened a SEP/IRA account for his small business. He was the only employee so all contributions were for his benefit. In Dec 2003 he closed his business and went to work for another company in 2004. That company had no retirement plan.
On his 2004 income tax return he took a $3000 deduction on pg 1 line 25(IRA deduction) since he was no longer in business for himself. He made the $3000 deposit to his SEP/IRA account. Must he open a separate IRA account or can he continue to use his SEP/IRA account to make his contributions? Any help would be greatly appreciated. | |
Chris2lane (talk|edits) said: | 2 April 2006 |
| Joe, his SEP IRA is relegated for self employed income. Since he is no longer self employed, I would think that his $3000 contribution should be placed into a separate IRA account. You don't want to put the apples into the oranges basket and vice versa. | |
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