October 2, 1990
TO: PENSION MEMBERS NO. 37-90
RE: REVISED FORM 5305A-SEP
__________________________________________________________
Attached is a copy of revised Form 5305A-SEP, Salary
Reduction and Other Elective Simplified Employee Pension-
Individual Retirement Accounts Contribution Agreement (Under
Section 408(k) of the Internal Revenue Code) and accompanying
instructions which were just released by the IRS.
Form 5305A-SEP is used by an employer with 25 or fewer
employees to permit employees to make elective deferrals to a
SEP. The form is not filed with the IRS.
The form is substantially identical to the earlier version
which was revised in October 1987. However, the updated form
references the annual adjustment of the $300 minimum compensation
threshold for eligibility purposes on page 1 and adds Question
and Answer 13, regarding participant transfer of contributions
before a SEP satisfies its annual ADP test, on page 5.
Copies of Forms 5305A-SEP can be obtained from the IRS
Forms Distribution Center at 1-800-424-3676. We will keep you
informed of further developments.
W. Richard Mason
Assistant General Counsel
Attachment