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?



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.



Add new comment

Log in or register to post comments