SIMPLE IRA Plan
SEP Plan
(Simplified Employee Pension) A simplified employee pension (SEP) plan is a business retirement plan which uses IRAs as the investment vehicle. The employer places money into its employees’ IRAs. The employer gets an immediate tax benefit, and the contribution is not income to the employee until distributed from the IRA. The plan must be operated, and administered, in a manner that does not discriminate in favor of highly compensated employees. An employer, such as a sole proprietor, partnership, and corporation including Subchapter S corporations, may establish a SEP. A self-employed individual is both an employer and an employee. A SEP may be established even if the owner is the only eligible employee participating. A SEP may be established for either a full or a part-time business. Please consult with your tax advisor for eligibility.
