| 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:
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Minimal paperwork and
reporting.
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Employers can change
their annual contributions.
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Deductible employer contributions
are made directly to employees’ IRAs.
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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:
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Who contributes: employer
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Up to 25% of an employee’s
eligible compensation or $49,000, whichever
is less.
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Employees who earn $245,000 or more are not eligible.
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Simplified Employee Plan (SEP)
Candidates:
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Smaller employers that
would like a plan that is easy to communicate
and inexpensive to operate.
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Smaller Employers that
want to be solely responsible in funding
the employee retirement plan thereby getting
a larger business tax deduction.
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Employers that may not
be able to afford the costs of maintaining
a Profit Sharing or 401(k).
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Employers who are looking
for the maximum eligibility requirements
to be able to exclude certain employees.
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Contact a LPL Investment
Consultant to go over your options for retirement.
Financial Advisors of LPL Financial are Registered Representatives with, and Securities, Advisory Services and Insurance Products are offered through LPL Financial and its affiliates, Member FINRA/SIPC. LPL Financial is not a registered broker/dealer. Investments are: Not FDIC insured, may lose value, are not bank guaranteed, and are not obligations of LPL Financial. LPL Branch Office located at 1311 Carolina Ave, Washington, North Carolina 27889. Investment Advisory Services offered through LPL Financial, a SEC Registered Investment Advisor
FINRA (www.FINRA.org ) SIPC (www.sipc.org)
This site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.
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