Part-time employee can't use SEP or SIMPLE IRA?


S

Steve Huff

My wife is employed part-time by her family's business. They have
about 75 employees, and she's an officer in the company. Other family
members who work there full-time receive contributions to a SEP, and
my wife has been told she cannot because she's part-time. I don't
believe she would meet the definition of highly compensated.

I've done some hunting on the web but can't find this as a
restriction... is it true that she can't contribute because she's
part-time? If not, can somebody point me in the direction of
something authoritative that would allow us to enlighten their
accountant?

Thanks,

Steve
nospamsam1 then an at sign
yahoo then a period
com
(my posting e-mail address is bogus to help eliminate spam)
 
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B

Brent D. Gardner, ChFC

Steve Huff said:
My wife is employed part-time by her family's business. They have
about 75 employees, and she's an officer in the company. Other family
members who work there full-time receive contributions to a SEP, and
my wife has been told she cannot because she's part-time. I don't
believe she would meet the definition of highly compensated.

I've done some hunting on the web but can't find this as a
restriction... is it true that she can't contribute because she's
part-time? If not, can somebody point me in the direction of
something authoritative that would allow us to enlighten their
accountant?
Steve,

Go to the source: The Service.

http://www.irs.ustreas.gov/retirement/article/0,,id=111394,00.html

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.
 

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