Santo Gold Posted March 19, 2024 Posted March 19, 2024 An individual owned his own business as a sole prop for 5+ years. No employees. No retirement plan. Within the past year, he switched to an LLC. I'm not sure if he has a new EIN or not. He also hired an employee after the LLC was created. He would like to start a SEP, but would like to keep the new employee out, at least for a few years per SEP eligibility. But can he be immediately eligible taking account of his sole prop service? Can a SEP count prior service with, in this case, the predecessor business entity? Thank you
Dare Johnson Posted March 20, 2024 Posted March 20, 2024 A SEP can count prior service with a predecessor employer. I don't think you can use Form 5305-SEP, so you will have to use a prototype. I know Schwab and John Hancock have a prototype SEP and some of the other custodians might have.
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