Starting a Business

When should an employer notify employees that it is not funding a SEP IRA?

min read
Opinions expressed by Entrepreneur contributors are their own.
Generally, an employer who has properly established a SEP plan must furnish an annual statement to each employee participating in the SEP that shows the amount contributed to his or her SEP-IRA for that year (presumably, even if the amount is zero).

This annual reporting must be provided to the employee no later than the January 31 following the calendar year for which the report relates. Depending on how your plan was established, there may not be a requirement to fund it every year if the company can’t afford to (and provided that the employer does not play "favorites" with who gets funded and who doesn’t).

Best to speak to your human resources coordinator or to an attorney specializing in pensions to get to the bottom of what’s going on.

More from Entrepreneur

David provides constructive insight to help businesses focus on their company growth, build brand awareness and know when and how to raise money.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.