terric
Feb 1 2005, 03:37 PM
Is there alternative contribution formulas for a SEP - i.e. integrated with SS or is the only acceptable formula pro-rata?
Lori Friedman
Feb 1 2005, 04:05 PM
In general, the permitted disparity rules apply to SEP contributions. See I.R.C. Sec. 408(k)(3)(D). I believe that both SAR-SEPs and model-SEPs (Form 5305-SEP) can't be integrated.
terric
Feb 2 2005, 11:10 AM
Thank you Lori - I appreciate your help!
actuarysmith
Feb 7 2005, 02:52 PM
While theoretically true, unless your model SEP contains language that allows for an integrated contribution - you will need a custom drafted SEP document.
Appleby
Feb 11 2005, 02:34 AM
The salary deferral portion of the SARSEP (redundant) cannot be integrated…but the employer contribution portion can be integrated – if the SEP is a prototype of individually designed SEP
By the way, a flat dollar formula- where everyone receives the same dollar amount- is also allowed. This can be allowed under a prototype or individually-designed SEP
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