Simplified Employee Pension (SEP) plans can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay.
Pros and Cons:
Who Contributes: Employer contributions only
Contribution Limits: Total contributions to each employee’s SEP-IRA are limited.
Filing Requirements: An employer generally has no filing requirements.
Participant Loans: Not permitted. The assets may not be used as collateral.
In-Service Withdrawals: Yes, but includible in income and subject to a 10% additional tax if under age 59 ½.
Call Shelly Dodge at 972/539-0002 today to schedule a complimentary consultation to discuss your investment options and to determine if a SEP is right for you.