Attorney is a sole proprietor (calendar year taxpayer) who hired his first employee in 10/98. Employee was over 21 years of age when hired and has earned over $450 of compensation in each year for 1998 thru 2000. In what tax year must attorney begin contributions for employee?

OOPS! Question should have read...In what tax year must attorney begin SEP-IRA contributions for employee?

2001 if the SEP doc requires service in 3 of last 5 years (max allowed)

or, if the Employer did not make a contribution (for himself or other EE's) in 2001 ... later

Question is not complete- when was the sep-IRA adopted? What eligibility requirements were selected? When did the attorney start the current sole-prop business?

when was the sep-IRA adopted?
in tax year 1998
What eligibility requirements were selected?
employment in three of last five years
When did the attorney start the current sole-prop business?
prior to tax year 1998