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SEP Retirement PlanThere are a few differences between this plan and most other retirement plans. First, employees cannot donate to their own retirement plan. Only the employer can make deposits into the accounts. The employer contributes to a traditional IRA account for themselves and their employees up to twenty-five percent of every employee’s gross pay. There are no start up costs and usually no operating costs either. An SEP carries with it many advantages. First, the contributions are tax deductible for the business that pays them. Also, the business sponsoring the plan pays no interest in the taxes earned by the investments. Businesses are not obligated to make the same contributions every year. They can decided when and how much to contribute to employee IRA’s. No complicated documents need to be filled out for the government or tax agencies, and a tax credit of up to $500 per year is available for the first three years of the plan. If you don’t have a retirement plan at your company, there’s no reason not to open an SEP retirement plan. This plan can be set up by any type of company, whether a corporation, an S corporation, a partnership, or even a sole proprietor. There are no ongoing costs, so it’s a cheap and easy way to show your employees that you appreciate them enough to care about their future. If you are a small business owner or work from home at your own business, the SEP retirement plan has special advantages for you. This plan makes it easy for you to set up your own retirement account and make tax deductible contributions to it the way a larger business might. Many small business owners neglect their retirement planning, but without a pension to help you through your golden years, you could easily end up in poverty. This is one way you can make your business work for you and your future. SEP Retirement Plan Go Back To Salary Info Page
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