SEP Prototype Provision

[Gary Lesser]

Does anyone know whether the IRS is allowing SEP prototypes to provide for immediate eligibility of existing employees (assume there is only one, the owner) of a new employer, and for future employees to satisfy a three-year service requirement? I've heard that the IRS is "no longer" allowing such provisions (but a few may have gotten through). All comments appreciated.

The SEP-LRM (attached) does NOT provide for such a provision.

sep_lrm_2_2002.pdf

[Gary Lesser]

Surely, someone has some documents they could look at and report back on!

[Belgarath]

Sorry Gary, I'd love to help if I could, but we never sponsored a SEP prototype.

I will say that most of the SEP prototypes that I've actually seen, and that isn't very many, are nearly identical to the IRS Model SEP except that they allow for maintaining another plan at the same time. [THXs for checking.---GL]

[Appleby]

The Pershing Prototype SEP provides such as option.

I will try to get a copy

[Gary Lesser]

Indeed it does. I've attached a PDF of Pershing's SEP Adoption Agreement.

Pershing_Prot_with_Immediate_Elig_4_Current_Es.pdf

[jevd]

Indeed it does. I've attached a PDF of Pershing's SEP Adoption Agreement.

Gary,

Did you happen to see if they post a copy of the IRS approval letter for this prototype?

[Gary Lesser]

Approval letter found - pdf attached (the dates (1/2003) seem to match).

Has anyone found any other examples of dual eligibility?

Pershing_SEP_Opinion_Letter.pdf