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Simplified
Employee Pension (SEPs):
SEPs are intended to encourage small
employers to setup retirement plans for their employees by
removing much of the expense and paperwork associated with
other qualified plans. An employer may contribute annually,
up to the lesser of $49,000 for 2009 (as indexed) or 100 percent
of compensation to individual retirement accounts (IRAs) for
each employee.
SEPs
have different rules related to eligibility, vesting, testing,
contribution limits and withdrawals. They are, again,
most appropriate for businesses with fewer employees.
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