The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: bought 1 share past cash in ira Date:  12/22/1998  10:07 AM
Author:  dglaser Number:  7464 of 127617

In response to:
[ In November I deposited a rollover check into my SEP-IRA at Datek, providing the only funding to this new account. I calculated the number of shares
for the current RP4 at the time, and bought them all. However, the four transactions left me short in the account about $17.]]

TMFTaxes wrote:
Well...I'm kinda lost here right off the bat. Generally, if you are making a rollover from a prior pension/profit sharing plan, it goes to a regular Rollover IRA...and NOT a SEP-IRA...which is really a completely different animal. So I'm a bit hesitant to
move forward, but I'll give you the best that I got.


Sorry I wasn't clear, and thanks for the response. But you raised an interesting point concerning SEP-IRA vs Rollover IRA, so here goes......

The check was the result of a request to my former employer to send me a check, made out to the SEP-IRA trust company that Datek uses, with my account number printed on the check along with FBO (assuming for-benefit-of) and my name. The ex-employer plan is a savings/profit sharing and (I think) retirement plan.

All contributions I made were pre-tax contributions, + company matchings.

Now I am employed by an S-corp in NJ, of which I am 100% stockholder and the only employee. I set up the SEP-IRA plan and then made the above request to my form emploer so as to fund my new plan. The entire process from request to deposit in new plan account took less than a month.

Have I done something which the IRS will not like? I am confused by the terms rollover/transfer, and was careful, upon much advice, to ensure that at no time did I recieve any funds (distributions?) in my own name. Hence the check was made out to the trust company.

Thanks again. You eased my mind in one area but now I worry about a new wrinkle :0 :)


Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us