Integrated SEPs

[Guest Maxwell]

I've been asked to find some information on how to implement an integrated SEP and I've found very little guidance. This is what I know so far...SEP experts, please feel free to comment:

1. An integrated SEP is a non-model SEP, meaning Form 5305 may not be used.

2. If all disclosure requirements are met (to participants), there are no reporting requirements to the IRS or DOL (meaning no 5500 need be filed; same as a model-sep).

3. There are two ways get started with an integrated SEP: draft an integrated SEP from scratch, or purchase a prototype from a financial services co.

Are these assumptions basically correct? Have you come across any good resources online that I could take a quick look at?

Here's another question:

Depending on whether you draft an integrated SEP, or purchase one from a bank, et al., would it be prudent to seek a Determination letter?

Thanks,

Maxwell

[Gary Lesser]

Prototypes are pre-approved as to form and a determination letter will not normally be issued to the adopting employer. Many prototypes provide for integration and are generally available without charge from the financial institution that will also (generally) maintain the SEP-IRAs of participanting employees.