Guest terric Posted February 1, 2005 Posted February 1, 2005 Is there alternative contribution formulas for a SEP - i.e. integrated with SS or is the only acceptable formula pro-rata?
Lori Friedman Posted February 1, 2005 Posted February 1, 2005 In general, the permitted disparity rules apply to SEP contributions. See I.R.C. Sec. 408(k)(3)(D). I believe that both SAR-SEPs and model-SEPs (Form 5305-SEP) can't be integrated. Lori Friedman
Guest terric Posted February 2, 2005 Posted February 2, 2005 Thank you Lori - I appreciate your help!
actuarysmith Posted February 7, 2005 Posted February 7, 2005 While theoretically true, unless your model SEP contains language that allows for an integrated contribution - you will need a custom drafted SEP document.
Appleby Posted February 11, 2005 Posted February 11, 2005 The salary deferral portion of the SARSEP (redundant) cannot be integrated…but the employer contribution portion can be integrated – if the SEP is a prototype of individually designed SEP By the way, a flat dollar formula- where everyone receives the same dollar amount- is also allowed. This can be allowed under a prototype or individually-designed SEP Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
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