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  • Deductions for SEP not funded in Oklahoma

    My Oklahoma employer has deducted $20.00 per week from my paycheck since 01-01-05 which was to be deposited to an SEP account he set up for me with Merrill Lynch.

    The agreement we had was that he would match my annual contributions which he did for the first 2 years (2005 & 2006). But the deductions from my checks since 01-01-07, totalling almost $3,000.00, were never put into my SEP.

    I was laid off about a month ago but prior to that I moved imy SEP to Edward Jones. I recently had a conversation with the my acct. rep. at Edward.Jones who advised me that I was not even supposed to make contributions to my SEP.

    What is my best course of action to recover this money. Can I charge him interest. If I threaten an FSLA audit I can probably get him to pay me fairly quickly but am curious to know how much more, if any, I could get by filing a lawsuit.

    I'm sure this sounds petty but I have watched him purchase a new boat, several new vehicles, several new guns, multiple trips to Vegas and gamble away 4 times as much as he owes me over the last 3 years all the while dismissing me whenever I asked him about the money he owes me.

    He's a total jerk and had I not loved my job I would have been gone long ago. Now that my job is gone...quite frankly, so is my patience.

  • #2
    I am not an expert on retirement plans, but I wonder if perhaps he setup a Simple IRA instead of a SEP since you were able to contribute. Reason being is you are correct, under a SEP it has to be employer contributions.

    First, if possible verify with Merrill Lynch that it was a SEP. I would review any documentation the employer gave you on the plan. Under a SEP, the employer should have given you a copy of the Form 5305-SEP (or other plan document, if not using the IRS model form) http://www.dol.gov/ebsa/publications/SEPPlans.html.

    If the employer setup a Simple IRA, you should have received a Summary Description. http://www.dol.gov/ebsa/publications/simple.html

    After you have confirmed it is a SEP or a Simple and have all your documentation. I would Contact the IRS. You can "direct your technical and procedural questions concerning retirement plans to TE/GE Customer Account Services at (877) 829-5500 (a toll-free number). The call center is open 8:30 a.m. to 4:30 p.m. Eastern Time. Or you may e-mail us at: [email protected]

    Note: All questions submitted via e-mail must be responded to via telephone, so please remember to include your telephone number in your message."

    Start with the IRS and see what they say. Depending on what the IRS says, you may want to consult with an attorney.
    Last edited by Blessed123; 11-03-2009, 07:40 AM.

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    • #3
      Thank you so much for your help.

      After contacting my ex-employer this morning and being met with less resistance than I had anticipated I feel confident that he will keep his word and have the money for me tomorrow.

      If not, you can be sure, I will be in contact with the IRS per your advice.

      Thanks again!

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