Series 26: SEP Plans

Taken from our Series 26 Online Guide

SEP Plans

Simplified Employee Pension (SEP) plans are IRA-based retirement plans for any sized business but are usually favored by small businesses. Under this type of plan, the business owner makes pre-tax contributions into an IRA account for eligible employees, and also for herself if the owner is self-employed. The plan allows employers to skip contributions in years when business is bad, but if the owner makes a contribution for herself, she must also make contributions for her employees. When contributions

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