SEP IRA Documents Required

In order to set up a SEP IRA account, two types of documents are required. This makes setting a SEP IRA more involved than setting up a traditional IRA or a Roth IRA. However, for a self employed person setting up a SEP IRA for himself or herself, the documents required for setting up a SEP IRA are the same as setting up a Traditional IRA or a Roth IRA.

What documents are required to establish a SEP IRA?

Employer Retirement Plan Agreement: To establish a SEP IRA, the employer completes and signs an Employer Plan Agreement, mostly included in The Simplified Employee Pension (SEP) Plan booklet. You can obtain this SEP IRA booklet from any financial institution which you are opening the SEP IRA account with.

When opening a SEP IRA account, a copy of the completed and signed Employer Plan Agreement and accompanying Disclosure Information must be provided to all eligible employees by the employer. This SEP IRA booklet should be kept in the business owner's files.

Traditional IRA Adoption Agreement: Each eligible employee (including the business owner if he or she is an employee) who wants to establish a SEP IRA account, completes a Traditional IRA Adoption Agreement and selects either the SEP IRA & Standard IRA or the Rollover IRA & SEP IRA Combined account type.

When must the employer provide SEP IRA notices to employees?

When setting up a SEP IRA retirement plan, the employer must provide copies of the completed and signed Employer Agreement and accompanying Disclosure Information to eligible employees when the SEP IRA plan is established and each time the Employer Agreement is amended by the employer.

Can an employee have a SEP IRA account at a different Financial Institution from the employer?

An employee of a business with a SEP IRA at another institution may generally establish a SEP IRA account with any Financial Institution of their choice.

The employee must complete a Traditional IRA Adoption Agreement and selects the SEP IRA & Standard IRA or the Rollover IRA & SEP IRA Combined account type.

To transfer existing SEP IRA assets, the employee must also complete the Retirement transfer form and attach an account statement from the custodian from which the assets are transferring.

The employee must also communicate the change in SEP IRA custodian to his or her employer, so that future contributions may be deposited directly into the account.

Can I rollover a SEP IRA account into another SEP IRA account?

Yes. A SEP IRA account may be rolled over to another SEP IRA account.