Simplified Employee Pension Plans in the Small Businesses

Do you work for a small business or for yourself and want to know if you will be safe and secure when you retire? Small businesses or self-employed individuals can provide benefits so you or the individual can have peace of mind. They can set up Simplified Employee Pension (SEP) plans. A SEP plan allows an employer to make contributions toward an employees' retirement, and if self-employed, his or her own retirement. The SEP rules permit an employer to contribute and deduct each year to each participating employee's SEP-IRA up to 15% of the employee's compensation or $30,000, whichever is less. Bonuses and overtime are included in the employee's compensation. Simplified Employee Pension Plans are funded by employer contributions only. A self-employed owner's contribu View the rest of this article