Can a sole proprietor opt out of a simple or SEP IRA plan for the first few years ?
He just wants a plan for now for his employees.
Thanks

He can set up a SIMPLE with matching contributions and then just not make deferral contributions for himself, so then there would be no matching contributions either.

Can't opt out of a SEP.

How unusual. Usually, what I hear is " He wants to cover himself, but not the employees".

Yes, it is refreshing. However, if the owner is age 59-1/2 (or another exception applied) he or she could make the contribution and withdraw it soon thereafter. A small amount must usually be left in the account so that it doesn't automatically close. Technically, an employer makes a contribution (to/under the plan); it is then allocated to eligible employees in accordance with the plan document. The actual allocation can be made by the employer or the trustee/custodian. Thus, all eligible employees should be receiving contributions at the same time.