Individual Retirement Accounts » SEP IRAs

Eligibility

Eligibility requirements for participation in a SEP are based on the following:

» Length of service can be set up to a maximum of 3 of the last 5 years working for the employer. One day of employment qualifies as one year
» Minimum age level can be established up to 21 years of age
» Can specify that the employee earns at least $450/annually - subject to Cost of Living Adjustments (COLAs)
» Can eliminate members of unions (if retirement benefits were a part of contract negotiations)
» Can eliminate non-resident aliens with no U.S. income source

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