The 5305-SEP form is the formal written agreement to provide benefits to all eligible employees under a SEP, and it may prevent employers from having to file annual retirement plan information returns with the IRS and the Department of Labor. Instruct eligible employees to complete an IRA application. For your convenience, an IRA Application may be printed from our web site. Profit Sharing Plans Profit Sharing plans are good solutions for employers who don't have a clear profit pattern. With a Profit Sharing plan, they can vary the percentage of contributions from year to year, or make no contribution at all.
Employees can withdraw from their account for special purposes.
Different vesting schedules are available. As a result, you can offset future contributions with forfeited balances. A Money Purchase Pension plan works well for businesses with a clearly defined cash flow. It requires a set contribution rate that an employer selects at the time a plan is established. The employer must subsequently contribute this fixed percentage of each participant's compensation regardless of the level of profits.