SEP IRA Form 5305
A client of mine opened a SEP IRA with Merrill Lynch several years ago and we transferred those assets to a Vanguard SEP IRA last year but neglected to complete SEP IRA Form 5305. Would the original SEP IRA Form 5305 from Merrill Lynch signed several years ago still be operable and fulfill the IRS requirement or must a new SEP IRA Form 5305 be signed because the assets have been transferred to a new custodian Vanguard?
On another topic, what is the remedy if a brand new SEP IRA is opened (not a transfer from another custodian) and the client fails to complete the required SEP IRA Form 5305. When we recognize the deficiency is it best to go back and just have the client sign and date the form belately or is there another required procedure?
Permalink Submitted by mk foss on Fri, 2009-11-06 17:58
It is difficult to find an answer to your questions because the Form 5305 is not filled with the IRS. If the owner/employee were audited, he/she should be able to produce the relevant form. I have 2 SEPs and I only know where one of the 5305 forms is. I opened that one with Fidelity – they told me to keep it safe because they did not want a copoy.
Permalink Submitted by Anonymous (not verified) on Sun, 2009-11-08 19:38
You are good to go with one SEP IRA Form 5305. As long as it is the same business, it acts as a plan document for all your investments, wherever they are.
pmk
Permalink Submitted by KATHERINE ADAMS on Tue, 2023-01-31 22:33
Do you have to fill the 5305-Simple out every year or just the first year you start the plan? I know you have to keep a copy and do not file it with the IRS, but do you have to provide it to the employees every year or just the portion of the election form they fill out, which is page 3