J2D2 Posted July 3, 2002 Report Share Posted July 3, 2002 Client has provided copy of seminar materials that state that an employer cannot use Form 5305-SEP if it has ever maintained a defined benefit plan (even if it has been terminated). The current Form 5305-SEP instructions and Pub 560 state that an employer cannot use the Form if it currently maintains any 401(a) qualified plan. However, I have not been able to find any authority for the statement that maintaining a DBP in the past disqualifies the employer from using Form 5305-SEP. Am I missing something? Cites, please. Thanks for any help. Link to comment Share on other sites More sharing options...
Belgarath Posted July 3, 2002 Report Share Posted July 3, 2002 The old IRS 5305 model SEP form did indeed contain the prior DB restriction that your client mentions. However, as you correctly noted, this restriction has since been removed. I can't, offhand, tell you when this revision was made. It may have been on the January 2000 updated 5305. Link to comment Share on other sites More sharing options...
Earl Posted July 4, 2002 Report Share Posted July 4, 2002 I think it only makes sense because the combined plan limits went away and the SEP had no mechanism for doing that test. CBW Link to comment Share on other sites More sharing options...
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