Roth IRA

[GTS1101]

I have a client who is part owner in a corporation. He gets a W-2 from the corporation for his annual earnings. In 2008 the corporation contributed on his behalf to a Roth IRA about $200 monthly. He put in 2,400 to a Roth IRA. The contribution did not come from his earnings it was just contributed to a plan for him set up by the corporation. Since the corporation made the contribution on his behalf and since he did not make the contribution would the contributions be taxable to him if he takes it out early? I know with a Roth IRA that it should be tax free when you take it out because it is after tax dollars invested but the corp made the investment and not my client. Nothing was reflected on his W-2 and his wages were not affected. Anybody heard of anything like this. I asked him to double check to see if it really is a Roth IRA and he is very confident that it is but it doesn't sound like a Roth to me. Any guidance would be greatly appreciated.

Thanks!
GTS1101

[Burke]

Sounds like a SEP-IRA plan. Have him give you a copy of the plan document.

[Koss]

IRA Contribution

I was also thinking that it might be a SEP-IRA, but a SEP-IRA cannot be a Roth IRA; it can only be a Traditional IRA.

Or it could be a Roth 401(k).

As recommended in the previous post, you really need to see copies of the plan documents.

BMK