Retirement Plans - Participation
All eligible employees must open an IRA to receive the employer’s contribution to the SEP. If the employee does not open an IRA account, the employer must open one for them. The employee must be at least 21 years old and have worked during three of the last five years for the employer and have earned at least $550. All eligible employees must participate as well as the employer.
The employer may contribute between 0-15 percent of the employee’s total compensation to a maximum of $51,000. Contributions to all SEP IRA’s, including the employer’s SEP IRA must be made at the same rate. An employee who is over 701/2 must also participate and receive a contribution. All eligible employees are immediately vested in the employer’s contributions to the plan.
comments powered by Disqus