Can an LLC (SMLLC/SP) less than 3 years old make SEP IRA contributions? According to IRS eligibility criteria, they state one must have worked for the LLC 3 of 5 years?

[dudafunk]

Reference IRS URL: <a rel="nofollow" target="_blank" href="https://www.irs.gov/retirement-plans/plan-participant-employee/who-can-participate-in-a-sep-or-sarse...>

[dmertz]

The answer depends on the requirements that you state with you establish the plan.  As stated in your reference, the 3-out-of-5 year requirement is the maximum service requirement that you can specify, however, you are permitted to establish less a restrictive service requirement such as zero years of service.

Most SEP plans are established using Form 5305-SEP.  The second blank on that form allows you to specify zero years of service as the service requirement, resulting in all employees (i.e., yourself in a SMLLC/SP) meeting the other eligibility requirements being participants.

https://www.irs.gov/pub/irs-pdf/f5305sep.pdf