I have a prospect that runs a 501(c)(6) managed by a Board of Directors. There are two paid employees. The Board wants to set up a SEP IRA for the two employees, which they will fund as the employer, but they don’t want to fund their own account as the employer. The SEP IRA rules state the employer contribution for the employees must be the same percentage as what the employer contributes to their own; however, the employer does not want to contribute to their own account. Is this allowable in a SEP IRA plan? If so, I suppose the employer can contribute any percentage they deem appropriate?

Thanks for your advice!