Sep ira

[jlcl]

What is the name of your state (only U.S. law)? California.

Two questions - Sole proprietor business who plans set up and contribute 20% to employees' SEP IRA for 2008.

1. The business only has one W2 employee who became vested for SEP IRA on Sept. 30, 2008, is the employee entitled to 20% of the entire 2008 wage base or only Oct. 1st - Dec. 31st wage base (since vesting date)?

2. The business has one W2 employee who terminated in June of 2008, I would think the employer still need to contribute to the plan even though the W2 terminated in 2008, is that correct?

 

[pattytx]

If you are the employer, I suggest you contact the broker or CPA who set up the plan. If you are the employee, the trustee. We would have no idea without reading the plan in its entirety.