What are the requirements to participate in a SEP IRA?
August 22, 2011
From: Christine
Date: Fri, 22 Jun 2007
How long do you have to be employed by a company before you qualify to participate in a SEP (Simplified Employee Pension Plan?)
Answer
Date: 2 Jul 2007
Hello Christine,
It depends on the terms of the plan. You could optionally be immediately covered.
An employee must be covered who (1) has reached age 21; (2) performed services for the employer during at least three of the five immediately preceding years; and (3) received at least a specific dollar amount of compensation from the employer for the year – $500 for 2007.
Good luck!
Mike Gray
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