QuestionNovember 17, 2025

Which of the following employees may be excluded from participation in a SEP? Employees covered by a collective bargaining agreement. Employees who are part time. Employees who are over the age of 65. Owner employees.

Which of the following employees may be excluded from participation in a SEP? Employees covered by a collective bargaining agreement. Employees who are part time. Employees who are over the age of 65. Owner employees.
Which of the following employees may be excluded from participation in a SEP? Employees covered by a collective bargaining agreement. Employees who are part time. Employees who are over the age of 65. Owner employees.

Solution
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Answer

Employees covered by a collective bargaining agreement. Explanation SEP (Simplified Employee Pension) plans allow certain exclusions, including employees covered by a collective bargaining agreement if retirement benefits were bargained in good faith. Other factors like age (up to 70½) or part-time status are generally not automatic grounds for exclusion unless criteria aren't met.

Explanation

SEP (Simplified Employee Pension) plans allow certain exclusions, including employees covered by a collective bargaining agreement if retirement benefits were bargained in good faith. Other factors like age (up to 70½) or part-time status are generally not automatic grounds for exclusion unless criteria aren't met.
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