Hello-

Client maintained a SEP IRA for several years. The SEP IRA was moved to a new custodian and a new SEP IRA Adoption agreement was signed (2016).

1. Client has not been making equal percentage contributions for employees. It typically has been nominal (within 1%) but one or two years it was a larger difference. It appears based on the SEP fix-it guide they go back and raise everyone’s contribution to match the highest percentage (plus earnings) for each year?

2. Client’s SEP plan said employees were eligible if they worked for three out of the last five years. The employer included employees immediately though in the year they started working. Is any correction needed?

3. Client’s secretary had a small amount of wages each year ($2K-$5K) and said they didn’t want to participate in the SEP. Based on the SEP fix it guide the client would need to go back and add contributions plus earnings to an account for her?

4. Is the client required to go back prior to 2016 to correct the SEP? Is there a statute of limitations? Or is correcting from when the current plan agreement was started (2016) appropriate?

Thank you!