Simple IRA Employee Pension Plans

The SEP-IRA plan, or just SEP, is a provision under federal law which allows employers to put company money into its employees' IRAs as a special type of company retirement plan. SEPs are allowed for sole employee/owner businesses as well as larger businesses with up to 100 employees.

  • Business Owners: Contribute Up To $49,000 Per Year To Your Own IRA
  • Approved For Sole/Self Employed, And Up To 100 Employees
  • Many Other Huge Advantages Over Other IRAs and Retirement Plans

The employer may contribute up to 25 percent of each employee's compensation or $49,000, whichever amount is less, a huge advantage over regular IRAs, even if the company has only one employee - the owner.

Advantages Include:

  • Contributions to a SEP-IRA are tax deductible to the company, and the company pays no taxes on the earnings inside those SEP-IRAs. No IRS filings are required from the company.
  • SEP plans allow company contributions for employees who are older than age 70-1/2, the only way persons of this age can have contributions made to a Traditional IRA.
  • The SEP plan is vastly simpler and less expensive to set up and operate than any other company retirement plan, and at the same time is much more powerful and flexible.