| Simplified
Employee Plan (SEP)
SEP IRA stands for Simplified Employee
Pension IRA. It's a tax-deferred retirement plan for
small business owners, where the employer makes deductible
contributions to their own IRA as well as deductible
contributions to IRAs for eligible employees.
Key Benefits of a Simplified
Employee Plan:
-
Minimal paperwork and
reporting.
-
Employers can change
their annual contributions.
-
Deductible employer contributions
are made directly to employees' IRAs.
-
All contributions must
be 100% immediately vested.
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Who Can Establish:
- Self-employed Persons
- Partnerships
- S-corporations
- C-corporations
- Non-profit Groups
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Annual Contributions:
-
Who contributes: employer
-
Up to 25% of an employee's
eligible compensation or $41,000, whichever
is less.
|
Simplified Employee Plan (SEP)
Candidates:
-
Smaller employers that
would like a plan that is easy to communicate
and inexpensive to operate.
-
Smaller Employers that
want to be solely responsible in funding
the employee retirement plan thereby getting
a larger business tax deduction.
-
Employers that may not
be able to afford the costs of maintaining
a Profit Sharing or 401(k).
-
Employers who are looking
for the maximum eligibility requirements
to be able to exclude certain employees.
|
Contact a UVEST Investment
Consultant to go over your options for retirement.
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