The prohibition on making a qualified charitable distribution from a SEP IRA
or a SIMPLE IRA only applies to "ongoing" SEP IRAs
or SIMPLE IRAs.
Simplified Employee Pension (SEP) IRA: SEP IRAs
are available to business owners and are a great option for people who are self-employed to save for retirement.
* For this purpose, SEP IRAs
and SIMPLE IRAs are included.
They can, however, set up and fund SEP IRAs
The general rule is that partners in a partnership and members of an LLC taxed as a partnership cannot have individual SEP IRAs
(Simplified Employee Pension Individual Retirement Account) plans.
In what is introduced as "essential first-aid for any American looking forward to a happy retirement," the author of investment guides explains traditional and nontraditional Individual Retirement Account (IRA) investments and regulations covering options including Roth IRAs and SEP IRAs
. The guide includes a foreword by an expert on self-directed IRAs, tips on matching retirement funds to financial goals, a glossary of acronyms and terms, resources, and life expectancy tables.
Because payments are made into an IRA established for each employee, they are also referred to as SEP IRAs
. SEPs can be established with sole proprietorships, partnerships, or corporations, and are particularly attractive for the self-employed who has no employees or the individual who has additional income from outside employment.
(simplified employee pension individual retirement accounts) and SIMPLE (savings incentive match plan for employees) IRAs tend to be best suited to sole proprietors and small companies with up to five employees, O'Shaughnessy says.
IRAs created under an employer-sponsored IRC section 408 SEP IRAs
and SIMPLE IRAs, as well as pension, profit-sharing or 401(k) funds transferred to a rollover IRA, enjoy an unlimited exclusion from the federal bankruptcy estate.
Unlike SIMPLE plans, however, SEP IRAs
do not entail employee contributions.
This exemption does not include SEP IRAs
. In fact, whether or not a state law exempts SEP IRAs
from creditors' claims, SEP IRAs
are likely not protected from creditors under the rationale that SEP IRAs
come under ERISA, and federal law preempts state law (2).
Further, IRAs, Roth IRAs, SEP IRAs
and SIMPLE IRAs need to be amended as well.