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Eligible employees may have as many different retirement vehicles as they choose. Employers can offer a SEP IRA and another type of retirement plan to employees, but doing so requires that the employer either adopt a pre-approved SEP or an individually designed SEP. The employer cannot use Form 5305-SEP. Participating in a SEP IRA has income tax filing consequences for both employers and employees. Both employers and employees should seek tax advice and planning assistance when trying to determine the impact to current and future tax planning scenarios.