Sep Ira

[geekgirldany]

I have a client that had a individual SEP before turning their business into a S-Corporation. They are now wanting to contribute to the SEP for TY 2010 but this will need to be done under the S-Corp.

Do they need to setup a new SEP for the S-Corp and then rollover the amount in the individual SEP to the new one?

Thanks
Dany

[ChEAr$]

[QUOTE=geekgirldany;107364]I have a client that had a individual SEP before turning their business into a S-Corporation. They are now wanting to contribute to the SEP for TY 2010 but this will need to be done under the S-Corp.

Do they need to setup a new SEP for the S-Corp and then rollover the amount in the individual SEP to the new one?

Yes, because there is now a new and different employer.

[geekgirldany]

Thanks I wanted to make sure before I told them.