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SEP eligibility, exclusions

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I'm not familiar with a lot of the rules for SEP plans, so I'm hoping a SEP person can help me out.

Is it possible under a prototype or individually designed SEP to exclude one or more of the HCE's from the plan?

Thanks for your help!

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No. The SEP may require an employee to 1) Attain the age of 21 during the year, 2) have performed services with the employer during any 3 of the 5 years immediately preceding the current year, 3) Must receive Compensation of at least $550 for the plan year in which the contribution is being made, and 4) Must not be a Non-Resident Alien or member of a Collective Bargaining Agreement.

This is pretty much the maximum you may do toward excluding employees.

Good Luck!


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