In what tax year must attorney begin contributions for employee?

[Guest fmcurley]

Attorney is a sole proprietor (calendar year taxpayer) who hired his first employee in 10/98. Employee was over 21 years of age when hired and has earned over $450 of compensation in each year for 1998 thru 2000. In what tax year must attorney begin contributions for employee?

[Guest fmcurley]

OOPS! Question should have read...In what tax year must attorney begin SEP-IRA contributions for employee?

[Guest SHP]

2001 if the SEP doc requires service in 3 of last 5 years (max allowed)

or, if the Employer did not make a contribution (for himself or other EE's) in 2001 ... later

[actuarysmith]

Question is not complete- when was the sep-IRA adopted? What eligibility requirements were selected? When did the attorney start the current sole-prop business?

[Guest fmcurley]

when was the sep-IRA adopted?

in tax year 1998

What eligibility requirements were selected?

employment in three of last five years

When did the attorney start the current sole-prop business?

prior to tax year 1998