SARSEP
| Employer Provided Retirement Plans |
|---|
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| Legal Background |
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Employee Retirement Income Security Act - ERISA |
| Defined Benefit Plans |
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Defined Benefit Pension Plan |
| Defined Contribution Plans |
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Employer Retirement Plans Overview |
| Managing Your Defined Contribution Plans |
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Setting up a 401(k) plan |
A SARSEP is a simplified employee pension (SEP) plan set up before 1997 that includes a salary reduction arrangement. Under a SARSEP, employees can choose to have the employer contribute part of their pay to their Individual Retirement Account or Annuity (IRA) set up under the SARSEP (a SEP-IRA). A SARSEP may not be established after 1996. However, for SARSEPs set up before 1997, eligible employees hired after 1996 must be allowed to participate. [1]
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) changed many of the Internal Revenue Code's requirements and limits for qualified plans and IRAs. If a model SARSEP plan was used, an updated model plan should have been adopted by the end of 2002 to take advantage of new law changes. [2]
