Client is adopting a new SEP plan with an effective date of 7-1-2004 to coincide witrh beginning of fiscal year. 2 employees who would have been eligible for the plan have terminated employment. Is the employer required to make a contribution for them? Didn't know if the fact that the plan is being adopted retroactive had any bearing.

ABSOLUTELY, if they were employed on the effective date of the plan and were otherwise eligible (e.g., earned over $450 if required).