SEP Account

Simplified Employee Pension plans (SEPs) are pension plans designed for self-employed individuals and small businesses. With these plans, there are few requirements to file with the IRS. SEPs allow an employer to make sizable contributions to employees that are tax deductible to the employer and are also excludable from employee’s gross income. The 2009 maximum contribution level is up to a $49,000 maximum or 25% of income (20% for self-employed income). Full contributions can be made in profitable years, and cut back in others.

Revised 01/18/2012