A SARSEP is a Simplified Employee Pension (SEP) plan that: Was established before 1997. Permits employee salary reduction contributions. Meets the following participation requirements annually based on all eligible employees (even those hired after 1996): At least 50% of eligible employees must choose to make employee salary reduction contributions for the year. Had no more than 25 employees who were eligible to participate at any time during the preceding year. May need to be amended for current law changes. Participate in a SARSEP Plan Benefits of participation, plan contributions, effects of withdrawing money from the plan and more. Operate and Maintain a SARSEP Plan Periodically review the plan, update for recent law changes, nondiscrimination testing requirements and more. Correct SARSEP Plan Errors Find, fix and avoid plan errors. Terminate a SARSEP Plan Requirements for ending a SARSEP plan. Additional resources See Resources - IRA-Based Plans for forms, publications, frequently asked questions, etc. SARSEP Checklist PDF It is important to review the requirements for operating your SARSEP every year. SARSEP Fix-It Guide, Common Problems, Real Solutions Tips on how to find, fix and avoid common mistakes in SARSEP plans. SARSEP Frequently Asked Questions
