SEP's and ERISA?

[austin3515]

Can someone tell me why a SEP can have a 3 year eligiblity period? I'm looking at the DOL's definition of an employee bnefit plan, and it carves out IRA's as long as there are no contriubions made by the employer, which of course a SEP would have. So why doesn't statutory eligiblity apply?

TAG says they are totally exempt from ERISA becauyse it's funded throiugh IRA's, but of course the DOL Regs specifcially reference SIMPLE IRA's.

I'm just trying to obtain a deeper understanding - I don; think I've uncovered a grand statutory boo boo...

[Guest Sieve]

IRAs (therefore SEPs) are specifically excluded from the participation & vesting provisions of ERISA (Section 201(6)), even though a SEP might be subject to other provisions of ERISA because it is a pension plan.

[austin3515]

If I may be so bold, where in here would I find that? ERISA 206 didn't seem to be on point, and I didn't see SEP's mentioned anywhere in 202?

http://benefitslink.com/erisa/crossreference_short.html

[Guest Sieve]

Not 206. 201(6).

[austin3515]

Whoops, my bad, here it is, just where you said:

http://frwebgate3.access.gpo.gov/cgi-bin/T...action=retrieve

[austin3515]

OK, so why do the DOL regs on plan assets mention SIMPLE IRA's?

If I may again be so bold, the answer is that they ARE subject to rules regarding plan assets/investments. The only rulkes they are NOT subject to are participation and vesting? Am I right?

[Guest Sieve]

IRAs are exempt from ERISA participation & vesting rules (ERISA Section 201) and the funding rules (ERISA Section301), but not the reporting & disclosure rules or the fiduciary rules.