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% of each employee’s pay.
- Available to any size business
- Easily established
- Low administrative costs
- Flexible annual contributions
- Employer must contribute equally for all eligible employees