Client is currently a sole proprietor S-Corp with a SEP IRA. He’s going to hire a F-T employee beginning next year, who will work for him for three years. He wants to continue to save for retirement in an employer plan, but doesn’t want to pay in to a plan for an employee. He’s already past the deadline to adopt a Simple IRA.

Can he delay contributing to a SEP for his new employee for a couple of years, (thinking of the 3-in-5 rule)?

TIA for any help you can give me.

Delia Fernandez