[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2520.104-48]

[Page 419]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2520_RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE
--Table of Contents
 
    Subpart D_Provisions Applicable to Both Reporting and Disclosure 
                              Requirements
 
Sec. 2520.104-48  Alternative method of compliance for model simplified 
employee pensions--IRS Form 5305-SEP.

    Under the authority of section 110 of the Act the provisions of this 
section are prescribed as an alternative method of compliance with the 
reporting and disclosure requirements set forth in part 1 of title I of 
the Employee Retirement Income Security Act of 1974 in the case of a 
simplified employee pension (SEP) described in section 408(k) of the 
Internal Revenue Code of 1954 as amended (the Code) that is created by 
use without modification of Internal Revenue Service (IRS) Form 5305-
SEP.
    (a) At the time an employee becomes eligible to participate in the 
SEP (whether at the creation of the SEP or thereafter), the 
administrator of the SEP (generally the employer establishing and 
maintaining the SEP) shall furnish the employee with a copy of the 
completed and unmodified IRS Form 5305-SEP used to create the SEP, 
including (1) the completed Contribution Agreement, (2) the General 
Information and Guidelines, and (3) the Questions and Answers.
    (b) Following the end of each calendar year the administrator of the 
SEP shall notify each participant in the SEP in writing of any employer 
contributions made under the Contribution Agreement to the participant's 
individual retirement account or individual retirement annuity (IRA) for 
that year.
    (c) If the employer establishing and maintaining the SEP selects, 
recommends, or in any other way influences employees to choose a 
particular IRA or type of IRA into which contributions under the SEP 
will be made, and if that IRA is subject to restrictions on a 
participant's ability to withdraw funds (other than restrictions imposed 
by the Code that apply to all IRAs), the administrator of the SEP shall 
give to each employee, in writing, within 90 days of the adoption of 
this regulation or at the time such employee becomes eligible to 
participate in the SEP, whichever is later, a clear explanation of those 
restrictions and a statement to the effect that other IRAs, into which 
rollovers or employee contributions may be made, may not be subject to 
such restrictions.

[45 FR 24869, Apr. 11, 1980]