A SEP plan allows employers to contribute to traditional IRAs (SEP-IRAs) that are set up for eligible employees. A business of any size, even self-employed individuals, can establish a SEP. A SEP does not have the same start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay.
This is a popular type of retirement plan because it is easy to set up and operate, has low administrative costs, flexible annual contributions, but the employer must contribute equally for all eligible employees.
How do I start an SEP?
If you are self employed or own your own business and would like to look into setting up a SEP, you can visit the IRS website for more information.
- How much can I contribute to an SEP?
- Can I rollover funds into or out of my SEP retirement account?
- Who can participate in a SEP plan?