Age
40
45
50
55
60
Max. Annual Tax defer Contribution $33,000
$52,000
$78,000
$93,000
$125,000
| A SEP-IRA is the simplest plan to establish and administer. In fact, SEP is an acronym for "simplified employee pension". The simplicity and flexibility of SEPs and the absence of annual reporting to the IRS make them attractive retirement plans for small business. In SEP plan, the employer contributes to employees’ IRAs. If an employee does not have an IRA, the employer has the employee open one. Once the employer makes a contribution, IRA tax rules control the employee’s retirement account. Contributions are limited to the lesser of 15% of each participant’s pay or $24,000 (in 1999) per participant. Info request |
