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Maximum employees for a SEP?


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Posted

Is the a maximum employee number for an employer adopting a SEP? I cannot find any limits, but 25 keeps running through my head. Maybe I'm just thinking of the old SARSEP rule.

Posted

AS far as I know, there is no limit on the number of employees you can have and still maintain an employer contribution SEP. The rule was 25 for a SAR/SEP.

Posted

A SEP may be established by an employer of any size; salary reduction (SARSEP) features are not permitted, however, if the employer had more than 25 employees at any time during the prior year. Thus, there is no limit on the number of employees that could participate in a grandfathered SARSEP for any nonconsecutive year.

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