[Code of Federal Regulations]

[Title 29, Volume 9]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 29CFR2520.104-48]



[Page 449-450]

 

                             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.



[[Page 450]]



    (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]