Are all employees eligible to participate in the SEP plan?
The age and service requirements that you choose, within IRS guidelines, determine which employees can participate. You can require that employees reach age 21 (or a younger age) and that they work for you for three (or fewer) years before joining the plan. You may also choose to exclude union employees covered by a collective bargaining agreement (if retirement benefits were the subject of good faith bargaining), certain nonresident aliens, and any employee whose total annual compensation is less than $550 for 2010 and 2011. For example, you can choose to let all employees participate by setting a minimum age and service requirement.
