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establishing a sep
If you choose to establish a SEP, your financial institution will probably have a "pre-approved" SEP that you can choose, either the model form or a prototype. Once you've settled on the SEP that you think would work best for you and your business, you will need to complete the document that establishes your plan. If you use a model SEP, complete Form 5305-SEP. This form does not get filed with the IRS. Give employees eligible to be included in the SEP a completed copy of the IRS Form 5305-SEP
and the other documents and disclosures listed in the instructions. If you are adopting a prototype or individually designed SEP, similar information must be provided to your employees. In addition, you or your employees must establish SEP-IRAs to receive the contributions.
You generally have little additional paperwork once the initial paperwork establishing the SEP is completed. The financial institution handles most of the other paperwork.
You can set up a SEP for a year as late as the due date (including extensions) of your income tax return for that year.