Is Sep Ira A Qualified Retirement Plan?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaA SEP IRA is a qualified defined contribution retirement plan under ERISA (The Employee Retirement Income Security Act of 1974.) SEP IRAs are easy to administrate. They’re particularly well suited for sole proprietorship or self-employed. The contributions are tax deductible. The plan account accumulates tax deferred. The distributions are taxable as ordinary income.Answered on July 2, 2013+01+1 this answer
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180 POINTSview profileTimothy NelsonFounder & CEO, OP Asset Mgmt, Tulsa, OKYes but it tends to have fewer rules and compliance issues to follow than say a 401k for those who can adopt this plan. It is an older plan design established for the self employed & small businesses. Like a Traditional IRA contributions are pre-tax as they can reduce the adjusted gross income reportable on your income tax return. As such distributions are taxable as ordinary income but not subject to payroll tax as these were paid in the reportable year the income was earned.Answered on September 3, 2014flag this answer
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