Form 5305-SEP, Simplified Employee Pension Contribution Agreement
Form 5305-SEP is the IRS model document a business signs to set up a Simplified Employee Pension, letting the employer make retirement contributions to employees’ IRAs. Fill in the official PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 5305-SEP?
A SEP lets an employer, including a self-employed person, contribute to traditional IRAs set up for each eligible employee, with much less paperwork than a full qualified plan. Form 5305-SEP is the IRS model agreement that adopts the plan: the employer states the eligibility requirements, signs it, and gives each eligible employee a copy along with the information printed on the form.
The form itself is never sent to the IRS. It cannot be used in every situation, for example by employers that maintain certain other retirement plans or that use leased employees, so read the eligibility notes on the form or the current guidance at irs.gov before adopting it.
Who files 5305-SEP?
- Small business owners setting up retirement contributions for themselves and their employees
- Self-employed people and freelancers who want an easy, higher-limit retirement plan
- Corporations or partnerships adopting a SEP using the IRS model instead of a prototype plan
- Employers who want each year’s contribution to be discretionary rather than fixed
How to fill out 5305-SEP
- Enter the business name and check the eligibility requirements you are adopting: minimum age, years of service, and any excludable employee classes within the limits printed on the form.
- Confirm your business can use the model form: the restrictions are listed right on it, including maintaining certain other plans.
- Sign and date the agreement as the employer.
- Give every eligible employee a copy of the completed form and the accompanying information, and make sure each has a traditional IRA to receive contributions.
- Download the PDF and keep the signed original with your business records. Do not send it to the IRS.
Quick fill 5305-SEP on this page
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Frequently asked questions
Do I file Form 5305-SEP with the IRS?
No. Signing the form and giving copies to eligible employees is what establishes the plan. Contributions are reported to the IRS by the IRA custodians on Form 5498, and the employer deducts them on its own return.
Who has to be included in a SEP?
Any employee who meets the age and service requirements you set on the form, within the maximums allowed. Contributions must generally be a uniform percentage of pay for everyone eligible, including the owner.
Do I have to contribute every year?
No. SEP contributions are discretionary. You can contribute a different percentage each year or skip a year entirely, as long as whatever you do contribute is allocated uniformly among eligible employees.