Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: My client is 75 years old and self-employed.  Is he eligible to establish and contribute to a SEP IRA?

Answer: Yes.  In fact if he sets up a SEP for his business, he is required to make contributions to it for himself if any contributions are made for a tax year.

However, even though he is making contributions to the SEP, he will also be required to take minimum distributions from the same account.  His RMDs will be calculated from the SEP IRA in the same way that they are calculated for any other IRA.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.