How do SEP employer contributions get contributed to my employees’ SEP IRAs?

Once the company has completed their 5305-SEP form in order to set eligibility, adopted the SEP plan, identified eligible employees, chosen a contribution percentage, linked a funding source, and funded the contribution, the money will be withdrawn from the employer’s bank account into our custodian account.

Honest Dollar will handle the delivery of this contribution to the SEP IRAs of signed up Honest Dollar users. If there are additional employees that are not yet signed up with Honest Dollar or eligible ex-employees, your accounting department must work with these individuals to deliver their applicable retirement dollars to their SEP IRAs.

From the custodian account, all Honest Dollar users who have signed up will have their funds delivered to their SEP IRAs within our software. If there are additional employees that are not yet signed up within Honest Dollar or eligible ex-employees, your accounting department must work with these individuals to deliver their applicable retirement dollars to their SEP IRAs.