Form 5306-Sep - Instructions printable pdf download

Form 5306-SEP (Rev. 3-98)

Page

General Instructions

Address.—Include the suite, room, or

Line 10d.—The 1998 compensation

amount under section 408(k)(3)(C) is

other unit number after the street

Section references are to the Internal

number. If the Post Office does not

$160,000.

Revenue Code unless otherwise noted.

deliver mail to the street address and

Note: The cost-of-living adjustment, if

you have a P.O. box, show the box

any, applicable to the dollar limitations

Purpose of form.—Form 5306-SEP is

number instead of the street address.

on lines 9a(1) and 10d are released

used by program sponsors who want to

Signature.—An officer who is authorized

before the beginning of each year in a

get IRS approval of their prototype

to sign or another person authorized

news announcement, in the Inter nal

simplified employee pension

under a power of attorney must sign this

Revenue Bulletin, and on the IRS’s

agreements.

application. (Send the power of attorney

Inter net Web Site at

Who may file.—Use Form 5306-SEP to

with this application when you file it.)

request a favorable opinion letter if:

Paperwork Reduction Act Notice.—

You are a bank, federally insured

Specific Instructions

We ask for the information on this form

credit union, savings and loan

to carry out the Internal Revenue laws of

User fee.—All applications must be

association that qualifies as a bank,

the United States. We need it to

accompanied by the appropriate user

insurance company, regulated

determine if your prototype simplified

investment company, or trade or

fee. Applications submitted without the

employee pension (SEP) meets the

professional society or association (other

proper user fee will not be processed

requirements of section 408(k). If you

and will be returned to the applicant.

than an employee association); and

want this approval, you are required to

give us the information.

To determine the proper user fee, see

You want to get a favorable opinion

Rev. Proc. 98-8, 1998-1 I.R.B. 225, or

letter that a SEP agreement to be used

You are not required to provide the

the current superseding revenue

by more than one employer is

information requested on a form that is

acceptable in form.

procedure.

subject to the Paperwork Reduction Act

unless the form displays a valid OMB

Who does not need to file.—Instead of

Line 2.—If you are amending your

control number. Books or records

designing their own SEP, sponsors of

previously approved SEP, enter the date

relating to a form or its instructions must

and the file folder number from the

programs may use IRS Form 5305-SEP,

be retained as long as their contents

latest opinion letter you received for your

Simplified Employee Pension—Individual

may become material in the

SEP.

Retirement Accounts Contribution

administration of any Internal Revenue

Agreement, to establish a SEP. Sponsors

Line 3.—If this SEP provides for elective

law. Generally, tax returns and return

who use Form 5305-SEP or Form

deferrals intended to meet the

information are confidential, as required

5305A-SEP with individual retirement

requirements of section 408(k)(6), check

by Code section 6103.

accounts or annuities for which the IRS

the box.

has issued a favorable opinion or ruling

The time needed to complete and file

Note: The Small Business Job

letter, or with model individual retirement

this form will vary depending on

Protection Act of 1996 (P.L. 104-188)

accounts issued by the IRS, are

individual circumstances. The estimated

repealed Code section 408(k)(6),

considered to have established a SEP

average time is:

effective December 31, 1996, except

that meets the requirements of section

Recordkeeping

8 hr., 8 min.

with respect to a SEP of an employer if

408(k). This applies even if you have

the terms of the SEPs of such employer,

reproduced the provisions of Form

Learning about the law

as in effect on December 31, 1996,

5305-SEP on your own letterhead or in

or the form

1 hr., 10 min.

provided for elective deferrals.

pamphlets that omit all references to the

Preparing the form

2 hr., 17 min.

IRS or its forms. Do not file Form

Line 9a.—The term “employees”

Copying, assembling,

5306-SEP if you use Form 5305-SEP.

includes all employees of a controlled

and sending the form

group of corporations (section 414(b)); a

Note: The IRS will not issue an opinion

to the IRS

16 min.

group of businesses under common

letter on a document submitted with

control (section 414(c)); an affiliated

If you have comments concerning the

For m 5306-SEP that is a combination of

service group (section 414(m)); certain

accuracy of these time estimates or

a prototype SEP and a prototype

leased employees required to be treated

suggestions for making this form

individual retirement account or annuity.

as the employer’s own employees under

simpler, we would be happy to hear from

What to file.—File this application and

section 414(n); and all employees

you. You can write to the Western Area

one copy of all documents that make up

required to be aggregated under section

Distribution Center, Tax Forms

the SEP agreement. If this is an

414(o).

Committee, Rancho Cordova, CA

amendment, include a copy of the

95743-0001. DO NOT send the form to

Line 9a(1).—This amount is adjusted

amendment and an explanation of its

this address. Instead, see Where to file

annually for increases in the cost of

effect on the SEP agreement.

above.

living. In 1998, the compensation

Where to file.—File this application with

received must be at least $400.

the Assistant Commissioner (Employee

Plans and Exempt Organizations),

Internal Revenue Service, Attention:

CP:E:EP, P.O. Box 14073, Ben Franklin

Station, Washington, DC 20044.

Form 5306-Sep - Instructions

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