Level 5

Question

SEP IRA Contribution Code

Forum|Forum|4 years ago
February 7, 2022
3 replies
13 views

S Corp. with only 1 employee. Has not made SEP contributions in several years. Wants to contribute for 2021. It is a SEP IRA and his Schwab advisor wants to know the IRS Code for the contribution.

ProSeries Professional

This topic has been closed for replies.

qbteachmt

Level 15

He needs a new advisor. If this is a Schwab advisor, what is Schwab supposed to provide to their own Representative? I would expect them to give the person support and guidance.

Code for what? He puts money into an account. Schwab sends a 5498. Done.

Don't yell at us; we're volunteers

S

Summit1Author

Level 5

I was looking online and there are various codes but I don't know if that is what they are looking for. To me it is just a contribution to his existing SEP IRA that his company will pay on his behalf .

Thank you

Just-Lisa-Now-

Intuit Community Champion

He needs to bring you something that shows what "code" they're referring to...what are the choices?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

George4Tacks

Level 15

408 (k)

Answers are easy. Questions are hard!

qbteachmt

Level 15

"408 (k)"

The plan and account seem to already exist, though: "Has not made SEP contributions in several years."

It is possible this advisor doesn't understand any of what is happening here. As a benefits administrator in a previous life, I ran into this more than once.

Don't yell at us; we're volunteers

Just-Lisa-Now-

Intuit Community Champion

If its his own SEP IRA from years ago when he was self employed, they may be setting up a new account for the SCorp to deposit SEP money for employees.

I had an old SEP from an employer but I couldnt just add money into it when I became self employed, I had to start a new SEP as an employer.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

PATAX

Level 12

Wow, isn't that his job to know that?, if that is even necessary...I have never heard broker asking for that... just asking and just my opinion..

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