SEP ADOPTION AGREEMENT
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SECTION 1. EMPLOYER INFORMATION
Name of Employer
____________________________________________________________
Address
____________________________________________________________
City _____________ State ___________ Zip _______________
Telephone ______________________________
Federal Tax Identification Number ______________
Income Tax Year End __________________________
Plan Year End _______________________________
SECTION 2. EFFECTIVE DATES Check and complete Option A or B
Option A: [ ] This is the initial adoption of a Simplified
Employee Pension plan by the Employer. The Effective
Date of this Plan is _____________________, 19_______.
NOTE:The effective date is usually the first day of the
Plan Year in which this Adoption Agreement is signed.
Option B: [ ] This is an amendment and restatement of an
existing Simplified Employee Pension plan (a Prior
Plan). The Prior Plan was initially effective on
________________________, 19________. The Effective
Date of this amendment and restatement is
________________, 19______.
NOTE:The effective date is usually the first day of the
Plan Year in which this Adoption Agreement is signed.
SECTION 3. ELIGIBILITY REQUIREMENTS Complete Parts A, B and C
Part A. Service Requirement: An Employee will be eligible to
become a Participant in the Plan after having performed
Service for the Employer during at least _____ (enter
0, 1, 2 or 3) of the immediately preceding 5 Plan
Years. NOTE: If left blank, the Service Requirement
will be deemed to be 0.
Part B. Age Requirement: An Employee will be eligible to
become a Participant in the Plan after attaining age
_____ (no more than 21). NOTE: If left blank, it will
be deemed there is no age requirement for eligibility.
Part C. Class of Employees Eligible to Participate: All
Employees shall be eligible to become a Participant in
the Plan, except the following (if checked): [ ]
Employees covered by a collective bargaining agreement
and nonresident aliens, as described in Section 3.02 of
the Plan. [ ] Those Employees who have received less
than $300 (indexed for cost of living increases in
accordance with Section 408(k)(8) of the Code) of
Compensation from the Employer during the Plan Year.
SECTION 4. EMPLOYER CONTRIBUTION AND ALLOCATION FORMULA
Part A. Contribution Formula:
For each Plan Year the Employer will contribute an amount to be
determined from year to year.
Part B. Allocation Formula: Check Option 1, 2 or 3
Option 1: [ ] Pro Rata Formula. The Employer Contribution for
each Plan Year shall be allocated in the manner described in
Section 4.01(A) of the Plan.
Option 2: [ ] Flat Dollar Formula. The Employer Contribution for
each Plan Year allocated to the IRAs of Participants shall
be the same dollar amount for each Participant.
Option 3: [ ] Integrated Formula. Employer Contributions shall be
allocated in the manner described in Section 4.01(B) of the
Plan. For purposes of the integrated formula, the
integration level shall be (Choose one):
Option 1: [ ] The Taxable Wage Base (TWB) NOTE: If no box is
checked, the TWB integration level shall be the Taxable Wage
Base.
Option 2: [ ] _______% of
Part C. Retirement Savings Contributions: Check here [ ] and complete this
Part C only if a salary deferral arrangement is desired.
Option 1: [ ] Payroll Deduction Option. A Contributing Participant may
elect under a Retirement Savings Agreement to have his or her
Compensation reduced each pay period by an amount not in excess
of $________ or ________% of Compensation.
Option 2: [ ] Cash Bonus Option. A Contributing Participant may base
Retirement Savings Contributions on bonuses that, at the
Contributing Participant's election, may be contributed to an XXX
under the Plan or received by the Contributing Participant in
cash.
SECTION 5. EMPLOYER SIGNATURE ____________________ Date Signed____________
(Type Name)____________________________________________________
Name of Prototype Sponsor Investors Bank and Trust Company
Phone 0-000-000-0000
Address 00 Xxxxx Xxxxxx, 0xx Xxxxx
Xxxxxx, XX 00000
Note to Employer: Before signing this Adoption Agreement, you should
obtain the advice of a qualified attorney and tax advisor regarding
its completion and the legal and tax implications of adopting this
Plan.
