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What are the eligibility criteria for offering a SEP IRA plan?

To offer a SEP IRA, the employer must meet the following criteria:

Business Type: Any business can offer a SEP IRA, including sole proprietors, partnerships, and corporations.

Eligible Employees: You must include employees who:

  • Are at least 21 years old

  • Worked for you in at least 3 of the last 5 years

  • Earned at least $750 in compensation in 2025

Employer Requirements: There are no special requirements beyond having taxable business income. Business owners can also contribute to their own SEP IRA.

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