SEP CHECKLISTSEP CHECKLIST

This checklist isn't a complete description of                         For Business Owner’s Use 
all plan requirements, and shouldn't be used as                        (DO NOT SEND THIS WORKSHEET TO THE IRS)
a substitute for a complete plan review.

Every year it's important that you review the requirements for operating your Simplified Employee Pension (SEP)
plan. Use this checklist to help you keep your plan in compliance with many of the important rules. Click on 
"(More)" in any of the questions for additional information (including examples) on how to find, fix and avoid each 
mistake. See www.irs.gov/retirement and click on "Types of Retirement Plans" for Fix-It Guides, and other resources 
for SEPs and other plan types.   

1. Has your SEP been amended for current                    4. Are you determining each eligible 
law?                                                        employee's compensation using the 
                                                            definition in your SEP document? 
Laws related to retirement plans change quite frequently.   
You will need to change plan language and operation to keep Compensation used to determine contributions generally 
the plan within the law.                                    includes all bonuses and commissions and is limited to 
(More)                                                      $275,000 for 2018.  
                                                            (More)

2. Is the business that the SEP covers the 
only business you own?                                      5. Are contributions to each participant's  
                                                            SEP-IRA a uniform percentage of the 
Employees of other businesses you or your family members    participant's compensation?
own may have to be treated as employees when determining 
who is an eligible employee under this SEP.                 Employer contributions to a SEP must be the same percentage 
(More)                                                      of compensation for each employee maintaining a SEP-IRA in 
                                                            the plan.  
                                                            (More)

3. Are all eligible employees participating 
in the SEP?
                                                            6. Are SEP contributions to each  
Any employee who is at least 21 years of age, was employed  participant's IRA limited as required by 
by you for 3 of the immediately preceding 5 years, and      the Internal Revenue Code?
received compensation from you of at least $600 during the 
year is eligible to participate in a SEP.                   All SEP contributions must go to traditional IRAs set up for the 
(More)                                                      eligible employees and are limited to the lesser of 25% of 
                                                            compensation or $55,000 for 2018. 
                                                            (More)

If you answered “No” to any of the above questions, you may have a mistake in the operation 
of your SEP plan. This list is only a guide to a more compliant plan, so answering "Yes" to each question may not 
mean your plan is 100% compliant. Many mistakes can be corrected easily, without penalty and without notifying 
the IRS.  
 
■ contact your tax advisor             ■ visit the IRS at www.irs.gov/retirement           ■ call the IRS  at 877-829-5500

          Publication 4285 (Rev. 8-2018)  Catalog Number 37997E  Department of the Treasury  Internal Revenue Service  www.irs.gov