As an employer when should I establish a SEP plan ?

You may establish the SEP plan by filling out the appropriate 5305-SEP form and formally adopting the SEP plan. You may establish a SEP plan for any year as late as the due date (including extensions) for your company’s tax return for that year.  Each eligible employee must also have a SEP IRA or the SEP plan will be disqualified.  Per the U.S. Department of Labor requirements, once you fill out the 5305-SEP form and adopt the SEP plan all eligible employees must be delivered a copy of this form, but you are not obligated to make a contribution on their behalf.

As an employer you are required to deliver the 5305-SEP form to all eligible employees that are on-boarded users within our software. You must also deliver a copy of this form to any additional eligible individuals that exist outside of our software as soon as possible, to make sure that the DOL requirements are met.