tcunagin
Jul 23 2003, 01:03 PM
I have an old SAR-SEP plan that has 1 year eligibility requirement. Is the definition for 1 year in a SEP the same as in a qualified plan?
Appleby
Jul 23 2003, 01:07 PM
No. For purposes of a SEP, including a SARSEP, a year of service may be any period , regardless of how short the period may be. For instance, is a participant worked for one day during 2002, the participant has worked 1 of the five preceding years… because you have a 1-year service requirement, the participant will be eligible for a 2003 contribution...
Gary Lesser
Aug 5 2003, 10:11 AM
Cite: See Proposed Treasury Regulations Section 1.408-7(d)(2) regarding execution of documents and example in 1.408-7(d)(5).