What forms must be filed under a SARSEP?
Form 5500: The Form 5500, Annual Return/Report of Employee Benefit Plan, that is required to be filed by most qualified retirement plans is generally not required for SARSEPs. SARSEPs are exempt from the Department of Labor’s reporting and disclosure requirements provided the employer satisfies certain employee notice requirements and does not impose investment restrictions on monies contributed to employees’ SEP-IRAs. Reporting on Form W-2: Do not include employee elective deferrals in the “Wages, tips, other compensation” box of Form W-2. They must, however, be included in the “Social security wages” and “Medicare wages and tips” boxes. They must also be included in box 12. The “Retirement plan” box in box 13 must be checked. For more information, see the Form W-2 instructions.
