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SEP Document - Help or 5305


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Have a plan that has a SEP, note they also have a non-ERISA 403(b)

SEP was originally established with a 5305 years ago. Also, looks like a doc was put together in 89 of some sort nire looks like an spd. It has an integrated formula for the contribution. At some point the TPA firm realized that doc had old language in it and amended for law changes. I don't really think it ever had an approval letter or anything like that.

I am now trying to make sure they are compliant and am not sure what direction to go, ie just complete a 5305 current and it's requirements as per the instructions or are they ineligible for this form and must use a prototype plan. I'm unclear based on the instructions on the 5305 if they are ineligible for this. They have the 403(b) but not sure if that is considered another qualified plan which would knock them off the 5305 and it's integrated so it's not a uniform percentage of comp. Just not sure.

Can anyone offer assistance and if we have to amend onto a prototype, looks like it has to be submitted to VCP?

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Have a plan that has a SEP, note they also have a non-ERISA 403(b)

Who is the Employer sponsoring the SEP and Who is the Employer Sponsoring the 403(b)?

SEP was originally established with a 5305 years ago. Also, looks like a doc was put together in 89 of some sort nire looks like an spd. It has an integrated formula for the contribution. At some point the TPA firm realized that doc had old language in it and amended for law changes. I don't really think it ever had an approval letter or anything like that.

Each year, the employer "MAY" fund contributions to Traditional IRA accounts through a "Simplified Employee Pension (SEP)" arrangement. Notice, this isn't like a qualified plan where you have a plan whether or not it is funded. So, were contributions being made to the SEP each year?

I am now trying to make sure they are compliant and am not sure what direction to go, ie just complete a 5305 current and it's requirements as per the instructions or are they ineligible for this form and must use a prototype plan. I'm unclear based on the instructions on the 5305 if they are ineligible for this. They have the 403(b) but not sure if that is considered another qualified plan which would knock them off the 5305 and it's integrated so it's not a uniform percentage of comp. Just not sure.

Can anyone offer assistance and if we have to amend onto a prototype, looks like it has to be submitted to VCP?

If a hospital offers both a SEP and a 403(b), then they are actually separate employers for 415 limit purposes. A 403(b) is treated as 'controlled by the participant' and would be aggregated with other qualified plans (or SEPs) sponsored by companies owned by that participant. It may not be a problem, but we need more facts.

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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