Can you contribute to a SEP IRA even though the company that established it is no longer in business?
After consulting with one of my colleagues, I have provided his response to your quesetion regarding SEP IRA:
1. Employees can’t contribute to a SEP. If employees are covered by a SEP and there employer contributes less than the employees would be allowed to contribute to a traditional IRA, the employee can make up the difference with traditional IRA contributions.
2. If this is for a business owner (an employer) who had a SEP for any part of a year can contribute up to the max for that year. So if an employer had a business that they shut down mid 2018, they can still contribute up to 25% of their 2018 self-employed income or $55k, whichever is less.
Best of luck,
Crystalynn Shelton, CPA
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