If you have a SEP, the law mandates that any employee who has reached age 21, has worked for you in at least three of the preceding five years, and has received at least $450 from you for the year (the amount for 2001 and 2002; this amount may be adjusted periodically for inflation) must be allowed to participate in your SEP. You can write your plan to be more generous if you like (for example, allow employees under 21 or with fewer than three years of service to participate).
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There are a couple of points you should remember about participation: