Form 5305a-Sep - Salary Reduction Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement Page 7

Download a blank fillable Form 5305a-Sep - Salary Reduction Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement in PDF format just by clicking the "DOWNLOAD PDF" button.

Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.

Complete Form 5305a-Sep - Salary Reduction Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.

Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.

Form 5305A-SEP (Rev. 6-2006)

Page

disclosure statement that contains the

these contributions) attributable to elective

a 10% tax on early distributions if you are not

deferrals made during the year until March 15

following information in plain, nontechnical

⁄

years of age when you withdraw it.

of the following year or, if sooner, at the time

language:

Report the tax in Part I of Form 5329. Also

your employer notifies you that the deferral per-

see Pub. 590.

1. The law that relates to your IRA.

centage limitation test (discussed under Annual

If you have both excess elective deferrals

2. The tax consequences of various options

Limitation on page 6) has been completed for

and excess SEP contributions, the amount

concerning your IRA.

that year. In general, any transfer or distribution

of excess elective deferrals that you withdraw

3. Participation eligibility rules, and rules on

made before this time is includible in your gross

by April 15 will reduce any excess SEP

the deductibility of retirement savings.

contributions that must be withdrawn for the

income and may also be subject to a 10% tax

corresponding calendar year.

on early distribution. Report this tax in Part I of

4. Situations and procedures for revoking

your IRA, including the name, address, and

Form 5329. You may, however, remove excess

Disallowed Deferrals

telephone number of the person designated

elective deferrals from your SEP-IRA before this

to receive notice of revocation. (This

time but you may not roll over or transfer these

You are not required to make elective

information must be clearly displayed at the

deferrals to a SEP-IRA. However, if more than

deferrals to another IRA.

beginning of the disclosure statement.)

50% of your employer’s eligible employees

If the restrictions above do not apply, you

choose not to make elective deferrals in a

5. A discussion of the penalties that may

may withdraw funds from your SEP-IRA and

calendar year, then no employee may

be assessed because of prohibited activities

no more than 60 days later place those funds

participate for that calendar year. If you make

concerning the IRA.

in the same or another IRA, but not in a

elective deferrals during a year in which this

SIMPLE IRA. This is called a “rollover” and

6. Financial disclosure that provides the

happens, then your deferrals for that year will

can be done without penalty only once in any

following information.

be “disallowed,” and the deferrals will be

1-year period. However, there are no

treated as ordinary IRA contributions (which

a. Projects value growth rates of the IRA

restrictions on the number of times that you

may be excess IRA contributions) rather than

under various contribution and retirement

may make “transfers” if you arrange to have

SEP-IRA contributions.

schedules, or describes the method of

these funds transferred between the trustees

Disallowed deferrals and any income the

computing and allocating annual earnings and

or the custodians so that you never have

deferrals have earned may be withdrawn,

charges that may be assessed.

possession of the funds.

without penalty until April 15 following the

b. Describes whether, and for what period,

You may not, however, roll over or transfer

calendar year in which you are notified of the

excess elective deferrals, excess SEP

the growth projections are guaranteed, or a

disallowed deferrals. Amounts left in the IRA

contributions, or disallowed deferrals from

statement of earnings rate and the terms on

after that date will be subject to the same

your SEP-IRA to another IRA. These amounts

which these projections are based.

penalties discussed in Excess SEP

may be reduced only by a distribution to you.

c. States the sales commission to be

Contributions above.

charged in each year expressed as a

Employer To Provide Information on

Income Allocable To Excess

percentage of $1,000.

SEP-IRAs and Form 5305A-SEP

Amounts

In addition, the financial institution must

provide you with a financial statement each

Your employer must give you a copy of the

The rules for determining and allocating

year. You may want to keep these statements

following information:

income to excess elective deferrals, excess

to evaluate your IRA’s investment

SEP contributions, and disallowed deferrals

1. A copy of a completed Form

performance and to report IRA distributions

are the same as those governing regular IRA

5305A-SEP, the Model Salary Reduction SEP

for tax purposes.

contributions. The trustee or custodian of

Deferral Form (used to defer amounts to the

your SEP-IRA will inform you of the income

SEP), and, if applicable, a copy of the Notice

allocable to these amounts.

of Excess SEP Contributions. Your employer

Paperwork Reduction Act Notice. You are

should also provide you with a statement of

Additional Top-Heavy Contributions

not required to provide the information

any contributions made during the calendar

requested on a form that is subject to the

year to your SEP-IRA. Highly compensated

If you are not a key employee, your employer

Paperwork Reduction Act unless the form

must make an additional contribution to your

employees must also be notified at the time

displays a valid OMB control number. Books

SEP-IRA for a year in which the SEP is

the deferral percentage limitation test is

or records relating to a form or its instructions

considered “top heavy.” (Your employer can

completed.

must be retained as long as their contents

tell you if you are a key employee. Also, see

2. A statement that traditional IRAs other

may become material in the administration of

Top-Heavy Requirements on page 4 for the

than SEP-IRAs receiving contributions under

any Internal Revenue law. Generally, tax

definition of a key employee.) This additional

this SEP may have different rates of return

returns and return information are

contribution will not exceed 3% of your

confidential, as required by section 6103.

and different terms (for example, transfers

compensation. It may be less if your employer

and withdrawals from the IRAs).

has already made a contribution to your

The time needed to complete this form will

SEP-IRA, and for certain other reasons.

vary depending on individual circumstances.

3. A statement that the administrator of an

The estimated average time is:

amended SEP must furnish to each

IRA Contribution for SEP

participant within 30 days of the amendment,

Recordkeeping

4 hr., 29 min.

a copy of the amendment and an explanation

Participants

Learning about the

of its effects.

law or the form

5 hr., 1 min.

In addition to any SEP amounts, you may

4. A statement that the administrator must

make regular IRA contributions to an IRA.

Preparing the form

58 min.

notify each participant in writing of any

However, the amount of your contribution that

employer contributions to the SEP-IRA. The

If you have comments concerning the

you may deduct on your income tax return is

notification must be made by the later of

accuracy of these time estimates or

subject to various income limits. See Form

January 31 following the year of the

suggestions for making this form simpler, we

8606. Also, you may want to see Pub. 590.

contribution or 30 days after the contribution

would be happy to hear from you. You can

is made.

write to the Internal Revenue Service, Tax

SEP-IRA Amounts—Rollover or

Products Coordinating Committee,

Financial Institution Requirements

Transfer To Another IRA

SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave.

NW, IR-6406, Washington, DC 20224. Do not

The financial institution where your IRA is

If you are a highly compensated employee,

send this form to this address. Instead, keep

maintained must provide you with a

you may not withdraw or transfer from your

it for your records.

SEP-IRA any SEP contributions (or income on

0 votes

Top 20 Happy Easter Cards And Gift Tags To Download For Free

Top Ten Easter Arts And Crafts Activities For Your Kids

Free Easter Coloring Pages And Easter Printables For Your Kids

Related forms

Form 5305a-sep - Salary Reduction Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement Financial

Form 5305-a-sep - Salary Reduction And Other Elective Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement Financial

Form 5305-sep - Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement Financial

Form 5306-a - Application For Approval Of Prototype Simplified Employee Pension (sep) Or Savings Incentive Match Plan For Employees Of Small Employers (simple Ira Plan) Financial

Form 5305-sep - Simplified Employee Pension Form Financial

Related Categories

Parent category: Financial

Form 5305a-Sep - Salary Reduction Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement Page 7

Related Articles

Related forms

Related Categories