Model Simplified Employee Pension Plan (SEP)

A simplified employee pension plan is usually one of the easiest and least expensive ways for a small employer to provide employees with a retirement plan. Although a SEP is generally regarded as one of the simplest forms of retirement plans, it is still subject to complex and sometimes confusing regulations. A small business owner is faced with a surprising number of obligations regarding contributions, tax deductions, recordkeeping, employee notification, etc.

The attached file contains a sample simplified employee pension plan that illustrates the essential elements of a SEP. The plan is intended as a sample, and not as plan document that can be used, without modification, as your plan document. It may serve as a starting point in drafting a plan document that suits your particular needs. Or it might serve as a launching point for discussions with your attorney regarding the advisability and features of a plan that you might choose to offer. In any event, understanding what is required of you, and what must be contained in a plan document, will save you time and money in deciding whether to offer a plan and, if so, what the plan will provide.

The file is in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.

SEP plan