SEP IRA


A Simplified Employee Pension Plan (SEP) is a type of business retirement plan available to business owners and their employees. Because of their similarity to IRAs, SEPs are sometimes referred to as "Super IRAs", however, there is an important difference: SEPs allow annual contributions to exceed $5,000.

Allows employees to save for retirement while providing a tax deduction for the business. A SEP also allows businesses to retain quality employees.

SEPs allow business owners to contribute the lesser of 25 percent of their compensation or $61,250 annually (2011), limited by the compensation cap for the year. For 2011, compensation used in determining contributions will be limited to $245,000. Contributions made to SEP plans are tax deductible and grow tax-deferred. Business owners can exclude employees from the plan until they have worked for the business three of the immediately preceding five years and are over the age of 21.

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The employees of Warren Wealth Management do not provide tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.

Investment Types

For Individuals:


529 Plans
Annuities
Coverdell ESA
Life Insurance
Roth IRA
Traditional IRA

For Businesses:


401(k) Plans
403(b) Plans
457(b) Plans
Money Purchase Plans
Profit Sharing
SEP IRA
SIMPLE IRA