SEP IRA Plan Documents
It’s my understanding that no plan documents are needed for a SIMPLE IRA, but are needed for a SEP IRA. If this is correct, are those documents that are typically created by the CPA?
It’s my understanding that no plan documents are needed for a SIMPLE IRA, but are needed for a SEP IRA. If this is correct, are those documents that are typically created by the CPA?
Permalink Submitted by William Tuttle on Tue, 2022-02-22 20:21
You must always have a plan document for an employer retirement plan including both SEP and SIMPLE IRA plans.
You will almost always use a plan document from the custodian and/or one of the IRS model forms.
For a SEP IRA, you will either use a Form 5305-SEP (E-Trade, Fidelity, TD Ameritrade, Vanguard, etc…) or a prototype SEP IRA document (Schwab, Merrill Edge, etc…).
For a SIMPLE IRA you will almost always use either a Form 5304-SIMPLE or a 5305-SIMPLE. A 5305 uses a designated financial institution (DFI) and a 5304 allows each participant to select their own custodian.
I would never trust a CPA to have the legal or technical expertise to create a custom employer retirement plan document.