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What happens if less than 50% of eligible employees make elective deferrals under the SARSEP?

April 26, 2017deferrals elective eligible employees happens sarsep

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What happens if less than 50% of eligible employees make elective deferrals under the SARSEP?

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If less than 50% of the eligible employees choose to make elective deferrals to the SARSEP for a year, all elective deferral contributions made by other eligible employees for that year are disallowed and must be withdrawn from the employees’ SEP-IRAs.