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New Self-Employed LLC and three year employee ruleForum overview » SEP IRA Forum » New Self-Employed LLC and three year employee rule 
 
 jackmay52
Posted 2007-10-19 21:22:03 If I'm newly self-employed, do I have to wait 3 years before starting my own SEP-IRA???
 brent
Posted 2007-10-30 16:02:44 Good Question. What is an example of the 3-of-5 rule? Assume an employer has a SEP with a requirement that an employee must work for it in at least 3 of the last 5 years (the maximum requirement) to receive an allocation under the plan. To be eligible for the 2006 year, for example, an employee must have worked for the employer for some time (no matter how little) in any 3 years in the 5-year period 2001 to 2005. Thus, an employee that worked for the employer in 2001, 2004 and 2005, must share in the SEP contribution made for 2006.
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