Monday, December 10, 2012

Can I Have a SEP IRA and SIMPLE IRA For Employees?


Q: Can an employer offer both a SIMPLE IRA plan and a SEP IRA to his/her employees?



A: An employer that has a SIMPLE IRA plan cannot maintain another qualified plan, such as a SEP IRA, in which any employees receive contributions. An employee, however, who works for two different employers in the same year could be covered by a SEP IRA from one employer and a SIMPLE IRA plan from the other employer.

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