A SEP is a relatively simple retirement savings program for self-employed people or owners
of small companies. The key features of a SEP include:
- One of the easiest plans to administer
- Allows employers to make tax-deductible contributions to each eligible employee’s
retirement account
- Contributions can be made for any amount up to 25% of each employee’s compensation
(not exceeding $45,000 (2007 limit) with annual Cost-of-Living Adjustment)
- Generally the contribution percentage must be the same for all employees
- Contributions may be integrated with Social Security, allowing higher-paid individuals
to receive a higher contribution percentage
RBC Dain Rauscher does not provide tax advice. We will work with your independent
tax advisor to help create a plan tailored to your specific needs |
