Retirement Plans
IRAs; SEPs
SEP is the acronym for Simplified Employee Pension. This type of plan
is a simplified tax-favored retirement plan designed for small businesses/employers.
Any type of organization (sole proprietorship, partnership, C corporation,
S corporation, tax-exempt organization) is eligible to establish a plan
for its employees.
Primary advantages are low administrative costs and no complex IRS reporting
or testing requirements.
- Annual contributions are limited to the lesser of 25% of an employee's compensation or $42,000.
- Contribution amounts may vary from year to year at the employer's discretion.
- The eligibility requirements for participation may be restriction to those employees who have performed services for the employer in at least 3 of the immediately preceding 5 years. However, employers may impose lesser restrictions if desired.
- All contributions are immediately 100% vested.
- Plans may be established and funded up until the employer's tax return due date plus extensions.
For more information on SEP IRAs, view the available IRA and Retirement Planning services available through Janney Montgomery Scott LLC.
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