These retirement savings plans are tailored for people who are self-employed, partners, or owners of corporations. Simplified Employee Pension Plan (SEP) IRAs allow you to easily provide tax-deferred retirement benefits — much like a traditional IRA — to yourself and your employees.
Who is eligible for a SEP IRA?
- Anyone 21 or older with at least $550 in taxable compensation.
- Employees who have worked 3 out of 5 years for employer.
- SEP IRAs low cost and maintenance fees, along with more flexible contribution limits into employees’ plans make these plans attractive to businesses of any size. Those with an existing IRA or an employer-sponsored plan can roll over or transfer those funds into self-directed plans.
- Employers are also considered employees, so consult with a CPA or financial advisor for specific contribution guidelines.