Can I still set up an SEP if one of my employees refuses to participate?

By Denise Appleby AAA
A:



You can establish the SEP IRA, even if the employee refuses to participant. However, you would need to establish an IRA for the employee, assuming he or she is eligible, and deposit his or her contribution to the account. You would first need to check with the financial institution to determine whether it would be willing to establish the account with your signature, rather than the participant's.

You may also want to notify the employee in writing when the account is established and funded.



For more insight on SEPs, check out Plans The Small Business Owner Can Establish.



Question answered by Denise Appleby, CISP, CRC, CRPS, CRSP, APA



RELATED FAQS

  1. Should I purchase a master limited partnership (MLP) in my retirement account?

    Learn why investors may have to pay taxes on dividends from master limited partnerships, or MLPs, held in individual retirement ...
  2. What are the tax implications of owning a master limited partnership (MLP)?

    Learn about the tax benefits of owning units in a master limited partnership, and understand how distributions are treated ...
  3. How should I invest the money I keep on my IRA?

    For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates ...
  4. Why choosing the right investment adviser is crucial for your portfolio's health

    Absolutely! Just as finding a good mechanic will help keep your car running smoothly, finding a good broker or financial ...
RELATED TERMS
  1. Value Of Risk (VOR)

    The financial benefit that a risk-taking activity will bring ...
  2. Business Judgment Rule

    A legal principle which grants directors, officers, and agents ...
  3. Freelancer

    A freelancer is an individual who earns money on a per-job or ...
  4. Back Pay

    The amount of salary and other benefits that an employee claims ...
  5. Constructive Discharge Claim

    An insurance claim made by an employee who has quit his or her ...
  6. Separation Of Powers

    An organizational structure in which responsibilities, authorities, ...

You May Also Like

Related Articles
  1. Investing News

    A New Corporate Governance Initiative ...

  2. Retirement

    Top 10 Stocks for Retirement Portfolios

  3. Trading Strategies

    Top 7 Roth IRA Stocks for 2015

  4. Stock Analysis

    Will American Airlines Fall Back To ...

  5. Stock Analysis

    3 Things I Learned From The Container ...

Trading Center