Expert: Allen - 8/28/2006

Question
Hello.  I work for a company that has a SEP-IRA plan.  Each employee must set up their SEP account and then turn in their account information so that I can send a check to the financial institution of their choice.  What happens if an employee does no participate (or they no longer work for us, but they still qualify for a contribution)?  Can I open an account on their behaf?  

Thank you,
Teresa

Answer
You definitely have to make the contribution(s).  I would contact the former employee(s) and tell him/her/them you have a present with no strings and ask him/her/them to open the account and let you know who the check(s) should be made out to. If you don't get a response, you should try to open an account in his/her/their name(s) at the institution that gave you the papers to establish the plan. Hopefully they won't require a signature. If that doesn't work, try a local bank.