Employer-sponsored IRA

Amounts contributed to an employee’s Traditional IRA or Roth IRA by an employer or; by an association of employees to the IRA of its members.

 

            • Amounts contributed to employer-sponsored IRAs are subject to the same contribution limits and eligibility requirements of  Traditional IRAs and  Roth IRAs.

 

            • Amounts contributed by the employer IRAs are treated as taxable compensation to the employee and reported on the employee’s W-2

 

            • Contributions to employer-sponsored IRAs are deductible on the employer’s business tax return

 

            • Contributions to employer-sponsored IRAs are subject to FICA and FUTA taxes

 

            • Employer-sponsored IRAs are subject to, 1099-R, 5498 and 5500 reporting

 

(Source: Retirement Dictionary)