simplified employee pension plan

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Simplified Employee Pension Plan

Also called a SEP IRA. A retirement plan designed for persons with self-employed income and their employees. It operates like an IRA: it has contribution limits and may be invested in securities. When an employer sets up an SEP, he/she creates a different account for each employee and puts a certain percentage of each person's income into these accounts. The percentage must be the same for the employer and all employees (although the dollar amounts will differ because of different levels of compensation). The employer makes all contributions, which are tax deductible for him/her; when the employee makes withdrawals upon retirement, the withdrawals are tax-free. SEPs may exist side-by-side with 401(k)s.

simplified employee pension plan (SEP)

A special type of joint Keogh plan-individual retirement account that is created for employees by employers and that permits contributions from each party. The SEP was developed to give small businesses a retirement plan easier to establish and administer than an ordinary pension plan.

Simplified employee pension plan (SEP).

An SEP is a qualified retirement plan set up as an individual retirement arrangement (IRA) in an employee's name.

You can establish an SEP for yourself if you own a small business, or you may participate as an employee if you work for a company that sponsors such a plan.

The federal government sets the requirements for participation, the maximum annual contribution limits, and the rules governing withdrawals.

References in periodicals archive ?
In what is introduced as "essential first-aid for any American looking forward to a happy retirement," the author of investment guides explains traditional and nontraditional Individual Retirement Account (IRA) investments and regulations covering options including Roth IRAs and SEP IRAs.
SEP IRAs (simplified employee pension individual retirement accounts) and SIMPLE (savings incentive match plan for employees) IRAs tend to be best suited to sole proprietors and small companies with up to five employees, O'Shaughnessy says.
The seminar, "New Alternatives for Retirement Savings," will educate attendees about the various types of retirement accounts that can be self-directed including Traditional, Roth and SEP IRAs, Individual or Solo (k) plans will also cover the rules and regulations surrounding alternative asset investing with a focus on real estate.
IRAs created under an employer-sponsored IRC section 408 SEP IRAs and SIMPLE IRAs, as well as pension, profit-sharing or 401(k) funds transferred to a rollover IRA, enjoy an unlimited exclusion from the federal bankruptcy estate.
In fact, whether or not a state law exempts SEP IRAs from creditors' claims, SEP IRAs are likely not protected from creditors under the rationale that SEP IRAs come under ERISA, and federal law preempts state law (2).
His CPA, Patrick Bigelow, has prepared Geary's tax returns for years and has provided advice about business deductions, loans, SEP IRAs, and various other financial items, as well as personal financial planning services.
Once the employer decides how much to contribute to employee SEP IRAs in any given year, that contribution, a percentage of salaries from 0 percent to 15 percent, must be th same for all employees.
Five tutorials: Retirement Planning, Traditional IRAs, Roth IRAs, SEP IRAs and SIMPLE IRAs
8 MILLION (1) IRAs include traditional IRAs, Roth IRAs, and employer-sponsored IRAs (SIMPLE IRAs, SEP IRAs, and SAR-SEP IRAs).
This seminar will educate attendees on the various types of retirement accounts that can be self-directed including Traditional, Roth and SEP IRAs and Individual or Solo(k) plans and will also cover the rules and regulations surrounding alternative asset investing with a focus on real estate.
FIIS offers a complete line of retirement products exclusively for advisors and their customers, including 401(k)s, SIMPLE IRAs, and SEP IRAs.
The seminar, "New Alternatives for Retirement Savings," will educate attendees about the various types of retirement accounts that can be self-directed including Traditional, Roth and SEP IRAs, Individual or Solo (k) plans and Health Savings Accounts, and will also cover the rules and regulations surrounding alternative asset investing with a focus on real estate.