Lori Foresz Posted August 30, 2004 Report Share Posted August 30, 2004 Hi, I am new to the SARSEP world, so this may be a very simple question. ER has been making a 6% contribution to all employees but not capping compensation when determining the 6%. Is this okay? Help Link to comment Share on other sites More sharing options...
Gary Lesser Posted August 30, 2004 Report Share Posted August 30, 2004 Employers can not make an accross the board "elective" contribution. If you mean that the employer made a 6 percent of compensation contribution to all eligible employees under a separately adopted SEP then there would be a problem if considered compensation exceeded the $200,000/$205,000 amount. Please advise (the facts), and perhaps the "Board" can help you further. Link to comment Share on other sites More sharing options...
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