How Does A Sep Retirement Plan Work?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaSEP IRAs provide retirement benefits for the business owners and their employees. There costs are relatively low. The contributions are based of 25% of your net income not to exceed the maximum limit of $51,000. There’s no catch up provision for SEP IRA contributors over age 50. SEP IRA are based on net income, so do the math first because you may discover that a 401k plan with catch up provisions may be a better deal for lower income filers.Answered on June 8, 2013+01+1 this answer
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37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA simplified employee pension program is based on an IRA. However, since it is sponsored by the employer the limit for contributions is much higher (25% of compensation up to $52,000.) Each participant has a separate account. There is a minimum contribution for each SEP participant of $550. For additional information contact a life insurance agent that specializes in retirement programs.Answered on August 25, 2014flag this answer
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