KGLO44

I thought it was 'performed any work during 3 of previous 5 years'? If I had an employee start in December of 2014, work through 2015, and work for part of 2016, he'd be eligible for 25% match of total 2016 wages to a SEP IRA I'd have to set up for him? Or is that not the only SEP plan?

Hi, I'm a single member LLC owner, which is taxed as an S-Corp, taking 70k W-2 and about 200k pass-through, although some years that pass-through can increase substantially. I have two employees - one is part time, 10 hours per week, the other is 25-30 hours per week. Employees are non-highly compensated. I don't believe the 10 hour per week employee would want to use any of their wages for a retirement plan. The 25 hour per week employee may be interested but I haven't discussed with them. I want to maximize my tax deferred contributions; I am only 26 and my marginal tax rate is 42%. I would love to find an option that allow employer match and/or profit sharing to maximize my contributions, however I do not want to substantially increase required compensation or contributions for the employees (Employee turnover is high, and it's an unskilled position mostly packing and filling orders and reading packing lists) I also want a self directed plan that has minimal fees but I suppose that is more dependent on the provider I go with and not the type of plan.