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IRS Form 5305-SIMPLE , Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) - for Use with a Designated Financial Institution, if you require that all contributions under the SIMPLE IRA plan be initially deposited with a designated financial institution.
What is a 5305 vs 5305A? 5305 A is a salary reduction These were discontinued for newly established plans after 1996. Therefore, you must use the 5305 unless you want to establish a prototype (specially designed) SEP for certain reasons.
Contributions to SEP-IRAs Your contributions to each employees SEP-IRA for a year cannot exceed the lesser of 25 percent of the employees compensation for the year or a dollar amount that is subject to cost-of-living adjustments. The dollar amount is $61,000 for 2022 and $66,000 for 2023.
If a contribution is made, however, it must be allocated to all eligible employees ing to the SEP agreement. The Model SEP (Form 5305-SEP) specifies that the contribution for each eligible employee will be the same percentage of compensation (excluding compensation greater than $205,000*) for all employees.
An employees compensation for this purpose is his or her total wages as reported by the employer on IRS Form W-2, Wage and Tax Statement, plus the employees total salary deferrals made through the SIMPLE IRA plan during the year.
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The IRS has a model SEP plan document, Form 5305-SEP, Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement PDF.
Under a SEP, an employer contributes directly to traditional individual retirement accounts (SEP-IRAs) for all employees (including themselves).
Traditional IRA for Nonworking Spouse - Form 5305-A may be used to establish the IRA custodial account for a nonworking spouse. Contributions to an IRA custodial account for a nonworking spouse must be made to a separate IRA custodial account established by the nonworking spouse.

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