SEP IRA for a Sole Proprietor with W2 Employees
Hello,
I have a group of people from a financial blog arguing that sole proprietors can only set up the plan for themself and leave out employees.
Can a business owner get away with employee contribution liability if the business is set up as a sole-proprietor and have SEP IRA? I think you must have an EIN to hire employees and assume that the same rules will apply?
Permalink Submitted by Alan - IRA critic on Sat, 2023-09-09 23:44
All employees must be covered if they meet the eligibility requirements stated in the 5305 SEP. Service in 3 out of the last 5 years will end up excluding most newer employees.