Form 5305-SEP

Form 5305-SEP

A model form published by the IRS that is used to set up the terms of an SEP plan. An employer uses a separate Form 5305-SEP for each employee. It is kept for the employer's own records. It is not filed with the IRS.
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The IRS has a model SEP plan document, Form 5305-SEP, Simplified Employee Pension--Individual Retirement Accounts Contribution Agreement.
As with Form 5305-SEP, the employer is required to keep the form in its records but does not file it with the IRS.
A primary advantage to these plans is that there is no filing requirement for the employer beyond using the Form 5305-SEP to create the plan.
Employers must fill out and retain IRS Form 5305-SEP to establish the plan, but there are no subsequent required filings with the IRS.
For employers who do not offer any other qualified plan, a prototype SEP plan can be established by using Form 5305-SEP, Simplified Employee Pension--Individual Retirement Accounts Contribution Agreement; however, this form does not have to be filed with the IRS.
5305-SEP is very easy to implement, requiring only the completion of five questions on IRS Form 5305-SEP.
A SEP adopted by filling out Form 5305-SEP is somewhat inflexible since it must follow the provisions set out on the IRS model form.
You can adopt one by using a SEP prototype furnished by a financial institution--or by executing an IRS Form 5305-SEP yourself--and creating an individual retirement account (IRA) for each eligible employee.
And, apart from filing an IRS Form 5305-SEP to start the plans, employers generally don't need to complete any IRS or Department of Labor reports.
Envy can set up a SEP by completing Form 5305-SEP, Simplified Employee Pension-Individual Retirement Accounts Contribution Agreement.
The association establishes a SEP-IRA plan using IRS Form 5305-SEP and contributes the same percentage of compensation for each eligible employee.
The model SEP is established by simply completing an IRS Form 5305-SEP.