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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