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Alabama Form 5305-A-SEP: What You Should Know

SAR 5305 has two components: (A) A lump sum contribution in lieu of an employee elective deferral in a lump sum payment over 6 to 9 months. The lump sum is equal to the maximum elective deferral over 6 months, the amount that an eligible employee would have been permitted to defer in the absence of this SAR SEP. (B) A maximum of 2,000 in a special deferred annuity that may be paid in an election year. The lump sum is the maximum elective deferral on the special deferred annuity, the amount that an eligible employee would have been permitted to reduce the balance for. Form 5305A-SEP (Revised 5/17/15)- MSRP 17.75. Note. The SAR SEP 5305A provides an employee the power to reduce the amount of the total benefit payment under the SEP and is also a SEP. The SSP 5305A-SEP provides an employee an elective deferral ability on a fixed payment over 6 months, which is not dependent on an election. The employee can make the election on the Form 5305 when he/she completes his or her first payment. In the SEP form, the elective deferral cannot be made if the employee elects the Lump Sum IRA in lieu of the special deferred annuity. 6. Retirement Plans Form 5305-SEP (Rev. 5/18/15)- MSRP 17.75. Form 5305A-SEP (Rev. 3/25/16)- MSRP 17.75. These are the same form. The only difference is that in the 5305A the lump sum contributions is capped at 2,000. Form 5309A—Retirement Savings Plan, Individual Form 5309A-SEP (Rev. 10/31/14)- MSRP 17.75. The retirement savings plan component of a SEP (SAR SEP) is a pension, and is a separate pension (Form 5309) with all the rights, benefits and privileges associated with having a retirement savings plan. Unlike a SEP (SAR SEP), the retirement savings plan component of a SIP is not a retirement pension, meaning that benefits are not limited.

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