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If I open a SEP-IRA for myself, do I HAVE to extend it to my one employee? After reading the IRS info online I think I understand that once the plan is started, you must contribute the same percentage for all employees enrolled (Including yourself), but does that mean that you are forced to extend the plan to your employees, or can you open the SEP-IRA just for yourself? Any insight would be appreciated!

In my understanding there are two kinds of SEP-IRAs: 1) As a self employee/business owner for yourself SEP-IRA and another as a business owner 2) A sbusiness owner for yourself and the other employees. In the first category the contribution limitation is about $25,500 for year 2000 and under 2nd plan about $30,000 for year 2000 and also % of income as a limitation. Moreover, if plan 1 you have time till April 15 of this year for year 2000 whereas December 31, 2000 is the timelimit to open account under 2nd plan. I read this kind of information on broker account openining instructions.

It will be helpful if TMF comments on this information accuracy as I am planning to open too.

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