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Does anyone provide an SEP prototype document that allows for age weighted contributions?


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Guest thomas24ct
Posted

I have a client. 25 total employees, no retirement plan in place. 3 owners and 1 other employee meet the eligibility requirements for a SEP in 2010. The owners are in their 50's and the other is 27. I would like to skew the SEP contributions to the owners using an age weighted formula but cannot find anyone that provides a document.

Can anyone help?

Posted

408(k)(3)© CONTRIBUTIONS MUST BEAR UNIFORM RELATIONSHIP TO TOTAL COMPENSATION. --For purposes of subparagraph (A), and except as provided in subparagraph (D), employer contributions, to simplified employee pensions (other than contributions under an arrangement described in paragraph (6)) shall be considered discriminatory unless contributions thereto bear a uniform relationship to the compensation (not in excess of the first $200,000) of each employee maintaining a simplified employee pension.

408(k)(3)(D) PERMITTED DISPARITY. --For purposes of subparagraph ©, the rules of section 401(l)(2) shall apply to contributions to simplified employee pensions (other than contributions under an arrangement described in paragraph (6)).

PensionPro, CPC, TGPC

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