Lori Foresz Posted August 30, 2004 Posted August 30, 2004 Hi, I am new to the SARSEP world, so this may be a very simple question. ER has been making a 6% contribution to all employees but not capping compensation when determining the 6%. Is this okay? Help
Gary Lesser Posted August 30, 2004 Posted August 30, 2004 Employers can not make an accross the board "elective" contribution. If you mean that the employer made a 6 percent of compensation contribution to all eligible employees under a separately adopted SEP then there would be a problem if considered compensation exceeded the $200,000/$205,000 amount. Please advise (the facts), and perhaps the "Board" can help you further.
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