Maintaining another qualified plan?

[Sully]

Client would like to establish a SEP for 2001, but......

Client had a calendar year DB plan that was terminated in 2000. There was a contribution due for 2000 that was not put into the plan until after September 15, 2001. That contribution is being taken as a deduction on the client's 2001 personal return.

The instructions to Form 5305-SEP say you may not use the 5305-SEP if you currently maintain any other qualified retirement plan.

Is the above client considered to be 'maintaining'

a qualified plan for 2001 and therefore unable to set up the SEP?

Thanks in advance.

[Appleby]

For a DB plan it includes a plan that was maintained or is still being maintained. You need to use a prototype document until the SEP documents have been amended . I think this DB rule will be removed from the form, given that the combined limit, i.e. 415(e) has been repealed.