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employer contributions to a SARSEP


Guest pensiondoc
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Guest pensiondoc

I do not believe any employer contributions other than top heavy can be made to a SARSEP.

Does anyone have a cite for this?

Thanks,

Steve

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I think part of the answer depends upon the document you are using. You could use a prototype SEP which would allow for discretionary employer contributions as well as Salary Reduction. Or you could use both a 5305 SEP and the 5305A SEP in order to have employer contributions. But, if you're just using the 5305A, I guess the answer is top-heavy only.

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  • 2 weeks later...

Agreed. If the document is only a SARSEP, then the only true employer contributions that can be made are those that are required to be made to non-key employees if the plan is top-heavy (and the T-H rule is being satisfied in that plan).

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