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Yes, there is no limit on the number of employees of an employer to be eligible to sponsor a SEP, so a larger employer MAY provide a SEP. However, examining the pros and cons of a SEP versus a qualified plan (i.e., PS 401(k)), it very questionable if a larger employer SHOULD provide a SEP. There might be some special circumstances where a SEP works better, but I would imagine those are few and far between.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services


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